INDUSTRY

 

Oct 14 - 20 , 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

COMPANIES ORDINANCE '84

A set of 17 amendments in the Companies Ordinance 1984, approved by the Federal Cabinet last week, are designed to bring about far-reaching improvements in the corporate sector at par with the developed world.

 

The amendments in the Companies (Amendment) Ordinance, 2002, await approval by the President, the commissioner (Enforcement) of Securities and Exchange Commission of Pakistan, Abdul Rehman Qureshi told, would further facilitate corporate sector in operations. They would bring greater efficiency in regulation of companies, he said.

Describing the history of companies law in Pakistan, he said originally the Companies Act, 1913 governed the companies. It was replaced by Companies Ordinance, 1984. Amendments, however, continued to be effected in it from time to time. The Ordinance was reviewed twice comprehensively, that is, in April 1991 and 1999.

The latest amendments were drawn up by a committee set up by the SEC in October 2001 after elaborate consultations with the professional accounting bodies, trade organisations, stock exchanges, associations and legal exports for improvement of the Ordinance.

The new law provides for registration of single member companies (SMC) for the first time in Pakistan. The system is already in vogue in UK and ECC with good results. At present, Mr. Qureshi pointed out, at least two persons are needed for the formation of a private company. The new concept would not only be beneficial to the investors but also go a long way in the expansion of a disciplined corporate sector.

The SEC, he said, might suggest to the government to exempt SMCs from tax to encourage their establishment because ultimately it would accelerate documentation of economy.

TURKMEN GAS PACT LIKELY THIS MONTH

An agreement to build a massive gas pipeline across Turkmenistan to Pakistan, stalled by two decades of civil war in Afghanistan, is expected to be signed later this month, a source told AFP on Tuesday.

The presidents of Afghanistan, Pakistan and Turkmenistan "plan to sign an accord on the construction of the Turkmen-Afghan-Pakistan pipeline in the Turkmen capital from October 26 to 27," an official in the Turkmen oil and gas ministry said, speaking on condition of anonymity.

A meeting of the heads of a committee set up to implement the pipeline plan is to take place from October 17 to 18 ahead of the gathering to prepare a framework agreement on the pipeline's construction, the official added.

Both gatherings are expected to be attended by a representative of the Asian Development Bank, which has been one of the main backers of the pipeline plan.

RAZAK TO ATTEND 5-NATION RICE MOOT

Commerce Minister Abdul Razak Dawood on Tuesday left for Bangkok, Thailand, to attend five-nation international rice moot being held on Wednesday.

China, Thailand, Vietnam, India and Pakistan are participating in this moot.

Razak will pursue the participating nations for bringing stability in rice prices, and demand protection of patent rights of Pakistan in "Basmati" category of rice.

He will also be meeting with the trade ministers of China, Vietnam, and Thailand and agriculture minister of India.

Pakistan rice ranks seventh in terms of foreign exchange earning. Private sector has been allowed to export rice freely; Pakistan exports Basmati rice to Dubai, Oman, Saudi Arabia, UK, Bahrain, Iran, Qatar, Kuwait, Mauritius, Sharjah and Yemen.

ECC ASKS FOR 30 DAYS OF OIL STOCKS

The Economic Coordination Committee of the Cabinet (ECC) on Monday discussed the position of oil products and directed the authorities concerned to arrange "30 days of stock" to meet any eventuality.

Official sources told that the ECC, which was presided over by Minister for Finance Shaukat Aziz took into account the possible attack on Iraq by the United States and decided that instead of having last year level of 15/16 days of stocks of oil, there must be 30 days of stock to meet any urgent needs.

SBP ASKED TO RESTRICT LEASING TO LOCAL GOODS

The government has directed the State Bank of Pakistan (SBP) to restrict consumer financing to only locally manufactured goods to promote local industry.

A commerce ministry official told on Sunday that the leasing facility was being misused by foreign companies due to a "technical mistake" by the State Bank of Pakistan.

Early last month, the federal government had decided to launch a scheme of consumer financing by providing small loans to the individuals to purchase household goods like motorcycles, refrigerators, television, etc., through all commercial banks.

M-1 GOES TO LOCAL CONTRACTORS

The Pakistan Motorway Contractors Joint Venture (PMCJV) on Monday emerged as the lowest bidder for the completion of remaining work of Islamabad-Peshawar motorway (M-1) project with a bid price of Rs11.87 billion.

This bid price is apparently lower than a negotiated price tag of Rs12.5 billion agreed to with the same contractor around six months ago but the final price would be around Rs800 million higher due to certain conditions attached with the bid.

FBS YET TO RELEASE LSMI GROWTH RATES

The Federal Bureau of Statistics (FBS) has yet to make public the growth rates of the large scale manufacturing industries (LSMI) occurred during the first two months of the current financial year.

As a matter of policy, the FBS was bound to make public much before the statistics showing LSMI growth rates in July-August period, well-placed sources told.

When contacted an official source said that the FBS was collecting information from three major sources Central Board of Revenue (CBR), Ministry of Industries and provincial bureaus statistics regarding production of LSMI.