The alternative is a self-reliant national economic
growth with globalization restrained by growing debt crises and
Perhaps, finance minister Shaukat Aziz hit the nail
on the head when he told the annual joint meeting of the IMF and World
Bank: "What is the point of enhancing capital flows if the
capacity to pay them continues to be constrained by restrictive trade
In the current phase of their economic development,
emerging markets suffer from "chronic trade gap, imports
exceeding exports, that impacts on their current account
On the other hand, industrialized states suffer
presently from economic slump and recessionary trends and need markets
to sustain growth.
And the world trade order needs to be built on
exchange of trade surpluses created by natural domestic advantage that
each country possesses and as far as possible and practical on
balanced bilateral trade.
When greater access to developed markets is denied,
emerging markets suffer the balance of payments deficits that is
managed either by external assistance, foreign investment or capital
And the countries that borrow heavily and tend to
integrate with the global financial system without corresponding rise
in volume of exports, are hit by debt crises and currency crashes.
Owing to this imbalance, the global debt crises,
that, so far were managed by IMF bailouts, are getting worse, forcing
the Fund to consider something akin to bankruptcy law and practices as
an option to resolve the global debt problem.
CHENAB FIBRES OFFERS BUY-BACK
Six majority shareholders in Chenab Fibres Limited,
have offered to buy-back shares held by all other shareholders in the
company, at Rs17.75 per share.
Extraordinary meeting of shareholders was held
recently, which was stated to have passed a special resolution for
de-listing of the company from all three stock exchanges. The purchase
price of Rs17.75 offered by the six majority shareholders — namely,
Mian Muhammad Latif; Mian Muhammad Javaid Iqbal; Muhammad Naeem;
Muhammad Faisal Latif; Muhammad Farhan Latif and Muhammad Rizwan Latif
— was stated to have been approved by the Karachi Stock Exchange.
The company said in a notice that the share
purchase offer was valid from October 11, to December 9, 2002 both
The market price of the share in Chenab Fibres of
Nishatabad, Faisalabad, is Rs17.75; the company holds paid-up capital
of Rs75 million and a cash dividend at 15 per cent was paid for 2000.
KASB ACQUIRES PLATINUM BANK SHARES
Khadim Ali Shah Bokhari (KASB) & Co has
acquired majority shares of Platinum Bank, making it financially
viable to exist. KASB, country's one of the largest brokerage house ,
has entered into an agreement to acquire majority shareholding in
Platinum Commercial Bank Ltd.
The transaction is subject to regulatory approval
of the State Bank," a statement of KASB said on Tuesday.
At the close of session at Karachi Stock Exchanges
on Tuesday share value of Platinum Bank surged from Rs5.80 to Rs6.10.
Two other companies — National Development
Leasing Co, and Security Investment Bank — were also vying to buy
stakes of Platinum Bank. Pak-Libya Holding Co was also interested to
buy shares of the bank.
NET HYDEL PROFIT
Water and Power Development Authority (Wapda) and
the NWFP government have, apparently, locked horns over the
provinces's share of net hydel profit for 2002-03.
In its White Paper (budget document) for the
2002-03 financial year, the provincial government has projected
receipts on account of net hydel profit at Rs15.9bn, as determined by
the current National Finance Commission (NFC) award.
But Wapda, in response to a news report on Sept 30,
has rejected the NWFP government's claim and said the province's share
for the 2002-03 financial year comes to around Rs3.724bn, according to
the Kazi Committee formula — a stand rejected by the provincial
Commerce Minister Abdul Razak Dawood on Tuesday
clarified that he did not favour consumer financing for imported
goods, saying that current consumer financing scheme is focusing
primarily on the locally manufactured products.
He said he was of the opinion that one should not
insist on consumer financing for only such consumer goods every
component of which is locally made.
Hub Power Company Limited (Hubco) said that it
would cost the company $3 million (Rs180 million) to replace the two
Ansaldo make Generator Transformers.
Chief Executive Vince Harris told an analysts'
briefing last week that the procurement cost of the two new generators
would be Rs360 million, but the company would have to bear only half
the cost since the transformer that broke down in June 2002 was fully
The Privatization Commission (PC) on Monday offered
second time 5 per cent government shares in National Bank of Pakistan
(NBP) to the general public to be closed on October 9 with the close
of banking hours.
In case of over subscription, the PC will exercise
green shoe option of additional 5 per cent shares of the bank. This
offer is being made to the general public on best effort basis at a
fixed price of Rs21 per share.