Nawaz Khan who is heading a high-level team, which
came Washington to sign the deal.
Under this agreement, Boeing will start delivering
the aircraft by the end of 2003.
The US Export-Import Bank agreed to provide 85 per
cent of the fund to Pakistan to help it buy passenger aircraft from
This is the first time the bank has underwritten a
deal between Pakistan and a private US firm. The United States has
agreed to help Pakistan revive its ailing economy — which Islamabad
said was adversely affected after Sept 11.
Last month, the Pakistani government agreed to
contribute $150 million over three years to help PIA finance the
purchase of new planes.
Pakistan's Finance Minister Shaukat Aziz said the
money will help the airlines embark on an ambitious $2bn fleet-overhaul
programme that includes the scheduled purchase of eight planes from the
In August, Mr Khan disclosed plans to improve the
airline's aging fleet with new aircraft. "Our relationship with the
Boeing began in 1960 when we bought 707 aircraft on lease from Pan
Am," Mr Khan said.
"The new extended range, 777 aircraft shall
enable us to regain our lost status and make us comparable to other
world-class airlines," said Mr Khan.
PIA is trying to reduce the 18-hour fly time between
Pakistan and the United States by inducting faster long haul aircraft
into its fleet.
PIA has 40 planes and 22,000 employees. The average
age of PIA planes is 23 years.
SPADEWORK DONE FOR MAJOR UNITS SELL-OFF
The Cabinet Committee on Privatization (CCoP) was
informed that preparatory work has been completed for the privatization
of PSO, NITL, OGDCL, PTCL, HBL, KESC, and Pak Arab Fertilizer.
PSO, NITL and HBL are at most advanced stages and the
pre-bid meeting for PSO transaction has been scheduled for November 15,
2002, the meeting was further told.
The meeting, presided over by Minister for Finance
Shaukat Aziz, also directed the Privatization Commission (PC) to work
with full commitment so that major transactions could successfully be
concluded in the period between November 2002- April 2003.
OCAC LIKELY TO CUT PRICES BY 2-5PC
The Oil Companies Advisory Committee (OCAC) is
expected to bring down the prices of oil products on November 15
following downward trend in international prices of crude oil and
"We expect that the prices will come down by 2-5
per cent," an analyst at Invest Capital and Securities says.
"The shining of the rupee against the dollar has also been a
helpful factor in bringing the import cost down," the analyst said.
He said that crude oil prices were at $28 a barrel in
the last fortnight as compared to current level of $26-27 a barrel.
The Economic Coordination Committee of the Cabinet (ECC)
decided to introduce gas management programme during the current
The ECC, which was presided over by Finance Minister
Shaukat Aziz, noted that in winter consumption of gas increased from 2.5
to three times more than the normal summer gas demand.
The Ministry of Petroleum & Natural Resources
has, therefore, planned gas demand/supply management programme to meet
the increasing demand of gas in the ensuing winter.
SBP ALLOWS REMITTANCE OF RE-INSURANCE PREMIA
The State Bank has allowed remittances of
re-insurance premia on policies issued in respect of accidental death.
In a circular issued to all banks the SBP says that
the step has been taken "to further liberalize the foreign exchange
For this purpose the circular has amended the
relevant part of the Foreign Exchange Manual.
NEPRA OKAYS 6.49 PAISA INCREASE
The present government has put on hold a 6.49 paisa
per unit increase in electricity tariff for announcement by the elected
government, authentic sources told.
The National Electric Power Regulatory Authority (Nepra)
had approved 6.49 paisa per unit increase in power tariff under
automatic fuel adjustment formula on Oct 17 and forwarded to the
government for notification the same day, the Nepra sources confirmed.
SBP LEAVES BANKS LIQUID AHEAD OF EID
The State Bank left the banking system with enough
liquidity to enable them to offer liberal credit to the private sector
and to finance the ongoing pre-Eid withdrawals.
The central bank mopped up only Rs20.9 billion from
the system by selling six-month treasury bills against the target of
Senior bankers said the SBP received Rs38.6 billion
worth of bids of which it accepted Rs20.9 billion and rejected the rest.
WB TO HELP IMPROVE INVESTMENT CLIMATE
The World Bank and its investment agencies plan to
help Pakistan improve its investment climate through macro-economic and
social reforms, direct project investments and political risk guarantees
over the next three years.
Officials in the economic affairs division told that
the bank assistance would be in a coordinated fashion in which both of
its investment agencies — International Finance Corporation (IFC) and
Multilateral Investment Guarantee Agency (MIGA) — would participate.
RS3.023BN DRAWBACKS PENDING FOR JULY-OCT
The Central Board of Revenue (CBR) has yet to release
Rs3.023 billion of duty drawback claims pending for July-October period
of current financial year.
The amount was withheld against the 57850 duty
drawback claims made during the same period this year, according to