FINANCE

 

Oct 07 - 13 , 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF


REMITTANCES TO TOUCH $3BN THIS YEAR

Overseas Pakistanis sent $2.4 billion foreign remittances to Pakistan in 2001-2002 which will further jump to $3 billion during the current financial year , claimed Finance Minister Shaukat Aziz.

 

"There is a reverse flight of capital...and we are sure of having $3 billion remittances in 2002-2003 from the overseas Pakistanis," he added.

Speaking at a news conference on Thursday, he said that expatriates were interested in making investment in real estate and stocks.

Newly arrived from the US, the finance minister said that some of the US banks, including Western Union, have assured help to increase Pakistani remittances from the United States.

The foreign exchange reserves are set to rise to $9 billion in December this year from the current level of $8.2 billion, before surging to $10 billion by June 30, 2003, he claimed.

In September alone, we have had a $600 million increase in reserves, he pointed out.

He was of the view that if the oil prices in the international market remained stable or continued to go down, Pakistan could see its reserves adequately replenished

"Due to increase in reserves, our foreign debt, which stood at $36 billion, now theoretically stand at $30 billion," he said.

The SBP, he said, was maintaining $6 billion cash while the rest of the reserves were being managed by the commercial banks.

According to an understanding with the IMF, Pakistan was supposed to have $4.2 billion which have now jumped to $8.2 billion.

He said the central bank will continue to intervene to make sure that there was no unnecessary increase in Pakistan rupee viz-a-viz the dollar.

NET LOAN STANDS AT $30BN: ISHRAT

Pakistan's current net indebtedness, according to international standards, is now 30 billion dollars, the Governor of State Bank of Pakistan Dr Ishrat Hussain informed newsmen on Wednesday.

Talking to newsmen after he had delivered his keynote address on Economic Development in Sindh in the concluding session of two-day conference sponsored by Dawn, the State Bank Governor said the international standard to judge the net indebtedness of a country is to minus the foreign exchange reserves from total debt liability.

He said that Pakistan has retired 4.5 billion dollars expensive commercial loans in last two years and contracted 2 billion dollars new loans on soft terms. "Pakistan's current foreign debt liability is 36 billion dollars and net indebtedness comes to roughly 30 billion dollars after you take into account about 6 billion dollars of central bank's foreign exchange reserves."

PICIC LAUNCHES DEPOSIT SCHEME

PICIC announced on Monday that it was launching a new deposit scheme, purely as a social service product, which would yield 12 per cent per annum on money parked by widows, orphans, retired civil and armed forces personnel and senior citizens.

Managing director Mohammad Ali Khoja told that PICIC would begin collecting deposits under the "PICIC special deposit certificate" scheme from October 1 and the validity of scheme would be up to December 30.

He said that Rs1,000 per month would be paid as profit on investment of Rs100,000; minimum investment per person would have to be Rs60,000 and maximum Rs300,000; maximum investment per family would be limited to Rs500,000; profit payment would be made on 1st day of every month through nearest branch where account has been maintained; financing (loan) would be available against deposit and the period of deposit would be five years.

D.G.KHAN CEMENT

Results released by the company on September 26 showed an incredible recovery to an after tax profit of Rs279.9 million for financial year 2002, from a huge loss of Rs444.0 million the year ago.

DOLLAR STABLE AT BELOW RS59 IN KERB

The US dollar traded below Rs59 level in the kerb market for the second consecutive day on Wednesday. Money changers said the dollar finished trading at Rs58.85/Rs58.90 for spot buying and selling on Wednesday depicting no big change overnight but keeping below Rs59 for the second day.

But Forex Association of Pakistan said the US unit closed at Rs58.95/Rs59.05 for buying and selling on Wednesday down five paisa overnight.

REMITTANCES FROM US INCREASE

The Finance Minister Shaukat Aziz said that remittances from the United States had increased from $300 million to $900 million this year and Pakistan has requested the US Department of Treasury to help facilitate the remittances.

The United States already has an agreement with Mexico for facilitating remittances to that country and Pakistan is looking for a similar arrangement.

PAKISTAN TO GET $125M

The US Export-Import Bank agreed on Tuesday to provide $125 million to Pakistan to help it buy passenger aircraft from the Boeing Co. This is the first time that the bank is underwriting a deal between Pakistan and a private US firm.

Last month, the Pakistan government had agreed to contribute $150 million over three years to help the PIA finance the purchase of 10 new planes.

CREDIT RISK RATING IMPROVED

The renowned financial publication, Euromoney, in its latest issue has indicated an improved credit risk rating for Pakistan. According to their analysts Pakistan's risk rating has improved from 113 to 91. It has analysed the credit risk of 185 countries in this issue.

PTCL DECLARES DIVIDEND

Pakistan Telecommunication Company Limited (PTCL) announced cash dividend at 27.5 per cent (Rs2.75 per share); the board proposing to distribute Rs14 billion of the after tax profit of Rs19.8 billion earned for the year ended June 30, 2002.