FINANCE

 

Nov 11 - 17 , 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF


$1BN DEBT RELIEF ON TRACK: US OFFICIAL

The US Under-Secretary of Economic and Business Affairs, Alan P. Larson, said that the US debt relief of $1 billion for Pakistan was right on track and only awaits approval by the Congress. "We have assured (Pakistan) that the debt cancellation is right on track and there is no difficulty in that," he said at the conclusion of his visit to Pakistan.

 

Talking to reporters after his meeting with President Gen Pervez Musharraf, Larson said that the debt write-off was a part of the complete budget that awaits Congress approval, which would meet after the ongoing mid-term elections in the United States.

He said the United States was extending financial assistance to Pakistan bilaterally and through its cooperation in the international financial institutions in rescheduling the country's debt.

Larson said his visit to Pakistan was primarily aimed at re-enforcing the bilateral economic and trade ties.

He praised Pakistan's economic policies during the last three years which helped the country escape financial turbulence that hit the economies all over the world. "Now there is an opportunity to build the country's progress and growth on that," he added.

He said the two sides shared views on how to go about in future in increasing cooperation in various fields.

Responding to a question, he said Washington supported Pakistan's election and democratic process.

About the future economic policies of the Pakistan government, Larson said he would like to draw the attention of the country towards the success stories of those economies which had been able to make progress and alleviate poverty.

In this regard, he referred to the investment in education and particularly opportunities in trade, agriculture and investment, which, he said, were stimulus to economic growth.

SBP GAINS RS8.9BN THRU FOREX DEALINGS

The State Bank earned more than Rs8.9 billion through foreign exchange dealings in the fiscal year 2001-02 against a huge exchange loss of Rs49 billion in the fiscal 2000-01.

The balance sheet of SBP that forms part of its annual report released recently shows that the bank earned the bulk of profit on foreign exchange dealings through forward covers. What enabled the SBP to earn profit through forward covers provided under the exchange risk coverage scheme.

Bankers say that the SBP provides exchange risk cover against frozen foreign currency deposits and incremental foreign currency deposits i.e. the deposits that the banks accepted afresh in the foreign currency accounts frozen after May 1998 nuclear blasts.

FOREIGN INVESTMENT STANDS AT $240M

Foreign investment in stocks stood at Rs14 billion or around $240 million on October 19, figures of foreign portfolio investment in capital markets, released by the State Bank of Pakistan revealed.

Foreign portfolio investment recorded net outflow of Rs549 million or around $9 million in the three and half months from July 1 to October 19, 2002 of the current financial year.

According to the figures released by the SBP and posted on the SECP website, between July 1 and October 19, foreign investors had purchased shares of the value of Rs3,844 million and sold stocks valued at Rs4,393 million, reflecting net outflow of Rs549 million.

PNSC

For the latest year ended June 30, 2002, PNSC posted after tax profit of Rs457 million. The earnings replace the loss of Rs299 million of the previous year.

SEVEN EOIS RECEIVED FOR PESCO FA SERVICES

The Privatization Commission has received seven expressions of interest (EoIs) for the financial advisory services for the disinvestment of Peshawar Electric Supply Company Limited (PESCO).

The Privatization Commission has sent request for proposals (RFP) to all the parties. RFP includes terms of reference, standard forms for technical and financial proposals, audited and approved financial statements of PESCO for fiscal year ending June 1999, June 2000 and June 2001, etc. The last date for submission of RFP is December 16, 2002.

UBL FUND LAUNCHING

UBL had offered units of United Money Market Fund (UMF) for subscription on November 1.

Director of UAMC (the management company of UMF) Mir Mohammad Ali said the UMF units had already gained some value in the past five days and its units were trading at 102.18 up from 102.04 when subscription opened.

RUPEE UP

After more than three-and-a-half months the euro again crossed parity with the US dollar both in the international as well as in Pakistan market.

Senior bankers said the single European currency rose to 1.004 in the world market. As a result the euro-rupee parity in the inter-bank market closed at Rs58.84 slightly higher than the dollar-rupee parity of Rs58.74. Some bankers said the intra- day high for the euro was Rs58.96.

NIT NAV RISES

National Investment Trust (NIT) outperformed the benchmark KSE-100 by 9.2 per cent in the first four months of the current fiscal year as its Net Asset Value rose to Rs15.05 on November 1 , from Rs10.99 on July 11 (first day after book closure), showing an increase of 36.9 per cent as compared to 28.7 per cent rise in KSE-100 index during the same period.

FAYSAL BANK

Faysal Bank Limited posted 6.3 per cent growth in after tax profit to Rs491.4 million for the nine months ended Sept 30, 2002, from Rs462.4 million in the corresponding period of the previous year.

PTC

For the first nine months of the year 2002, the statistics showed the company has earned a gross profit of Rs1,914 million as compared to Rs1,506 million over the same period of last year, showing an increase of 27 per cent.