"Hopefully we will sign these three new
agreements by November this year to complete the process of bilateral
agreements with donor countries," he added.
He said an agreement with Canada had been signed
for the rescheduling of non-official development assistance (ODA)
debt. An agreement for rescheduling of ODA was likely to be signed by
next month, he added.
Pakistan is believed to have been told that Japan
would reschedule its loans on a reduced mark up rate.
Informed sources said since the Bush administration
had indicated that it would write off Pakistan's $1 billion debt out
of total $3.2 billion debt, Japan could also follow suit.
They said there was also a possibility of debt swap
by Japan for social sector funding as Britain and Canada had done the
same after re-profiling of Pakistan's $12.5 billion debt by the Paris
Sweden and Norway were also expected to reschedule
their $200 million debt within this month.
Out of $12.5 billion debt, the US government has so
far rescheduled its $3.2 billion debt for which a formal agreement has
been signed between the two sides.
England and Canada have written off about $200
million loans, while a portion of their loans has also been converted
into debt swap for poverty alleviation.
PETROLEUM PRICES CUT BY 43 PAISA
The Oil Companies Advisory Committee (OCAC) revised
the petroleum products prices down by 0.21 to 1.21 per cent. The
revised rates will be effective from Nov 1.
The petrol was brought down by 43 paisa to Rs35.21
per litre, HOBC by 41 paisa to Rs39.70 and kerosene by 4 paisa to
Rs19.23 per litre. However, the light diesel oil was raised by 5 paisa
to Rs17.88 per litre, says an OCAC press release.
The committee said during the last few fortnights,
international product prices had risen sharply and this increase was
primarily related to the volatile situation in the Middle East.
The situation somewhat eased during the last
fortnight, reflecting on the international prices, which started
The crude oil during the period on average has
decreased from $27.55/barrel to $26.71 barrel, a decline of $0.84,
while the fortnightly exchange rate improved by Rs0.19.
The rupee has gained 10 paisa against the US dollar
in two days in the inter-bank market falling rising from 58.99 to
Bankers said the rupee gained on increased inflow
of foreign currencies both through exports as well as through
remittances from expatriate Pakistanis. They said the demand for the
dollar was low.
In the kerb market the rupee gained 10 paisa in two
days. Money changers said it inched up to 58.85/58.90 for spot buying
and selling against 58.95/59.00. But the Forex Association of Pakistan
said the rupee gained five paisa in spot selling rising from
58.97/59.05 to 58.95/59.00.
YIELD ON ONE-YEAR TBS DOWN SLIGHTLY
The State Bank slightly lowered the cut-off yield
on one-year treasury bills to mop up Rs37.4 billion from a
Senior bankers said the central bank sold Rs40
billion one- year bills at a maximum yield of 6.91 per cent against
the last cut-off of 6.99 per cent thus draining out Rs37.4 billion
from the market. The auction of the bills had generated bids worth
Rs62.7 billion at face value of which the SBP picked up Rs40 billion
and rejected the remainder.
LENDING, DEPOSIT RATES GAP WIDENS TO 8.3PC
The gap between weighted average lending and
deposit rates has widened from 4.8 per cent in June 1991 to 8.3 per
cent at the end of June 2001. The State Bank makes this startling
revelation in its annual report for fiscal year 2001/02.
The report admits that this increase in the banking
spread is often cited to conclude that the financial reforms pursued
in the 1990s were a failure. But it says that this interpretation is
PIA EARNS RS853M PROFIT
PIA has earned an operating profit of Rs853 million
for the 3rd Quarter of the current financial year.
The results for the period January-September 2002
shows a pre-tax profit of Rs.1.40 billion, according to the report
presented by PIA's Director Finance.
PSO PROFIT RISES TO RS1.04BN
Pakistan State Oil (PSO) posted after tax profit of
Rs1.04 billion for the first quarter of the current fiscal year ended
September 30, 2002, an increase of 176 per cent over the same period
Profit before tax rose to Rs1.4 billion,
registering an impressive growth of around 143 per cent.
SUBSCRIPTION FOR UMF
United Money-Market Fund (UMF) is being offered to
investors for subscription from November 1.
An spokesman of the fund said UMF is an open-ended
money market fund that will offer its units for investment to
investors on a continuing basis. The fund will invest in securities
such as treasury bills, government securities and corporate debt
UMF will be managed by United Asset Management Company Limited (UMAC),
a United Bank Limited group company.