Besides, the oil marketing companies (OMCs), which
are authorised to announce high speed diesel (HSD) prices after
deregulation from Sept 1, have also pushed up the prices of diesel by
Rs1.22 per litre. The new prices will be effective from Oct 16 to 31.
The Pakistan State Oil, having a market share of 61
per cent, has increased the ex-depot price of diesel to Rs20.98 per
litre from Rs19.76, and Shell Pakistan, which enjoys 30 per cent market
share, has surged the price of diesel by Rs1.22 to Rs 20.97 per litre
from Rs19.75. Caltex Oil, which enjoys 9 to 10 per cent market share,
has also enhanced the price of diesel by Rs1.22 to Rs20.98 per litre
from Rs 19.76.
Shell official said that the company has kept the
diesel price 48 paisa lower as compared to local refinery price of
Rs21.45 per litre.
The new ex-depot sale price of petrol has been fixed
at Rs35.64 per litre as compared to Rs34.66, and the new price of High
Octane Blending Component (HOBC) has been increased to Rs40.11 per litre
from Rs39.13. The kerosene price has been raised to Rs19.27 per litre
from Rs18.61 and light diesel oil (LDO) price has been fixed at Rs17.83
per litre as compared to Rs16.93.
The OCAC did not announce the prices of jet fuel
without giving any reason. In a statement, the committee said that the
prices of oil products in the international market have been
continuously showing an upward trend during the last few weeks primarily
because of the volatile situation in the Middle East.
During the current fortnight, the tension in the
region has particularly impacted the price of diesel, which has
increased by 5.67 per cent.
$260M ADB NEW LOAN FOR FINANCIAL SECTOR
The Asian Development Bank (ADB) will extend $260
million new loan to help strengthen financial sector reforms including
regulations and improve the governance of the financial market.
The Bank has also promised to provide $200 million
risk insurance guarantee to help the country's insurance sector to avoid
problems and losses experienced in the wake of terrorist attack on
America in September last year.
A four-member team headed by the chairman, Securities
and Exchange Commission of Pakistan (SECP) Khalid Mirza has returned
home from Manila after having discussed broad details of new loan and
the risk insurance guarantee.
Talking on Thursday, he said that since Pakistan has
met various conditionalities relating to first financial sector loan
($300m), the ADB has agreed to extend another $260 million loan for
improving the financial sector.
REMITTANCES UP AT $926M IN JULY-SEPT
Workers remittances or money sent back home by
overseas Pakistanis shot up to $926.6 million during July/September this
year from just $263.8 million in July/ September 2001.
The SBP said in a statement that in Sept 2002 workers
remittances stood at $335m up from about $91.2m in Sept 2001.
The statement issued to the press gives the figures
for the workers remittances only without making a mention of gross home
remittances. 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; Hajj remittances
and remittances from Iraq-Kuwait war affectees.
The second offering of government of Pakistan's 5 per
cent additional shares in National Bank of Pakistan (NBP) was four times
oversubscribed to Rs1.628 billion.
The initial public offering of 5-10pc shares
undertaken by the Privatization Commission in November 2001 was six
SBP CUTS MARGIN ON FCY BUYING, SELLING
No bank can now keep a spread of more than 20 paisa
per US dollar between the buying and selling rates of foreign currencies
quoted for the public. The State Bank issued a circular (F.E. no 15) on
Thursday to notify this decision.
Previously the maximum permissible spread was 50
paisa per US dollar — or its equivalent in other currencies.
SBP HOLDS 6-MONTH TBS RATE FIRM
The State Bank left the cut-off yield of six- month
treasury bills almost unchanged on Wednesday amidst divided opinion on
how long the SBP may keep the interest rates stable.
The central bank sold Rs19.75 billion worth of bills
at a cut -off yield of 6.37 per cent — down only two basis points from
the previous 6.39 per cent. This was the first separate auction of six
-month bills called by the SBP to refrain banks from what the SBP
officials say speculative overbidding.
NORTEL FRESH INVESTMENT
Nortel Networks company has decided to enhance its
investment in Pakistan, and initially it will be giving $7 million grant
to PTCL to help it improve its nationwide wireless services.
Three senior representatives of Nortel Networks told
a news conference on Wednesday that their company, which had earlier
invested $70 million in Pakistan would further be making considerable
Attock Cement Pakistan Limited, which raised Rs100
million through an Initial Public Offering (IPO) on June 18, was only
the second company to have entered the country's equity market this year
— Bosicor Pakistan Limited, the oil refinery, being the other one to
make a public flotation in 2002.
The World Bank has identified inadequate incentive
regime, risky and weak regulatory framework and weak financial
institutions as the reasons for government's failure to improve
investment climate in Pakistan.