Out of this, about half of the proceeds were credited
in foreign exchange ($306.8 million). This was appreciated by the CCoP
while reviewing the performance of Privatization Commission. This amply
demonstrated the confidence of foreign investors, including overseas
Pakistanis in the policies and economic environment of Pakistan. The
major foreign investments came from the sale of LPG businesses of SNGPL
and SSGCL; UBL and working interest in oil fields.
The CCoP also gave approval to the highest bid
received for Investment Corporation of Pakistan Lot-B Mutual Funds.
The highest bid of Rs302.5 million for the management
rights of ICP Lot-B Mutual Funds was offered by PICIC.
Disinvestment of Lot-B of ICP Mutual Funds and
transfer of management rights to a quality investor was a corner stone
transaction and will open opportunities for the transfer of NITL
transaction, State Enterprise Mutual Funds (SEMF) of the ICP, it was
The CCoP noted that in order to broad-base ownership
of shares and to provide depth to the stock markets, the government had
divested shares of MCB and POL worth Rs800 million through the stock
In addition, shares worth Rs1.15 billion for NBP in
the IPO and secondary offer were sold to the general public.
Five per cent additional shares of NBP had been
offered for subscription recently and it had been oversubscribed four
times despite the fact that shares were offered at a higher rate i.e.
Rs21 per share. In case of NBP alone, 30,000 new small
investors/shareholders had benefited from government divestments.
ECC OKAYS POWER POLICY
The Economic Coordination Committee of the Cabinet (ECC)
approved power generation policy, 2002, to offset shortage of around
400-500mw by 2005.
The ECC meeting, which was presided over by Finance
Minister Shaukat Aziz, believed that the new power generation policy
would encourage and promote investment in the private power generation.
The policy envisages one-window operation to
facilitate the investors. The objectives of the policy are to provide
sufficient capacity for power generation at a minimum cost and to avoid
capacity shortfalls; encourage and ensure exploitation of indigenous
resources, including renewable energy resources, human resources,
participation of local engineering and manufacturing capabilities;
create a win-win situation for all stakeholders; and attune it to
safeguarding the environment.
SALES PICK UP IN AUTO SECTOR
Auto sector has shown good results in the first
quarter as car sales went up by 23 per cent, bikes 28 per cent, light
commercial vehicles (LCVs) 28 per cent, trucks 92 per cent and buses
registered growth of 48 per cent.
The car production in July-September 2002-03
increased by 25 per cent as compared to same period of 2001-02. An
increase of 27 per cent was recorded in production of LCVs, while trucks
and buses production witnessed a jump of 167 per cent and 52 per cent
respectively. Motorcycles' assembly rose by 25 per cent while a drop of
eight per cent was seen in production of tractors.
Figures, compiled by Pakistan Automotive
Manufacturers Association (PAMA), showed rolling out of a total 12,864
cars in first three months of 2002-03 as against 10,246 units in the
same period of 2001-02. Sales stood at 12,880 units as compared to
DUTY ON CNG KIT MAY BE REDUCED
The government is likely to reduce the customs duty
on import of Compressed Natural Gas (CNG) cylinder, kits and other
machinery shortly, a senior official told.
To reduce the impact of withdrawal of duty exemption
on the same, the official said that the government was expected to
reduce the import duty on CNG kit up to 5 per cent.
The Wapda, in a policy shift, has opposed the
automatic tariff adjustment (ATA) formula and asked the government not
to increase six paisa per unit granted by the National Electric Power
Regulatory Authority (Nepra) on Oct 17 made under the ATA mechanism.
NRB CHIEF RESIGNS
President Gen Pervez accepted the resignation of Gen
Tanvir Naqvi, head of the National Reconstruction Bureau (NRB), who had
requested for relieving him of his duties.
An official announcement said the president had
accepted the resignation of the NRB chairman. It said the NRB chairman
was of the view that after the completion of the transition to the next
government, he needed to focus on his personal and family matters in
PAKISTAN, CHINA TO COOPERATE
Pakistani financial experts are prepared to join
hands with their Chinese friends to develop a scandal-free management
system. The two countries could also cooperate in enhancing their
professional skills in the field of accountancy.
This was stated by the leader of Pakistan delegation
of Chartered Accountants Mujahid Eshai, while addressing the second
international seminar on 'Accounting Theory and Practices'.