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