FINANCE

 

Dec 23 - 29 , 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

FDI UP BY 186PC IN 5 MONTHS

The flow of Foreign Direct Investment (FDI) registered an increase of 186 per cent to $ 462.1 million in July-November of the current financial year as against $161.6 million in the corresponding period of last year.

 

On monthly basis, the inflow of FDI during November 2002, was $ 63 million. The sale proceeds from privatization of UBL were also included in July-November 2002 FDI flows.

The major sectors, which attracted notable FDI during the period under review were financial businesses, $ 177.9 million; chemical, $ 77.3 million; Oil and Gas, $ 67.7 million; Transport, $ 36.7 million; trade, $ 18.8 million; textile, $ 17.4 million and others, $ 66.3 million.

The percentage share of major sector were financial businesses of 38.50 per cent; chemical 16.73 per cent; oil and gas 1.65 per cent; transport 7.94 per cent, trade 4.07 per cent, textile 3.76 per cent and others 14.35 per cent.

The share of major investing countries in FDI is: UAE 37.358 per cent; UK 21.77 per cent, USA 22.60 per cent, Saudi Arabia 4 per cent; Japan 2 per cent and others 13 per cent.

According to the announcement, the BOI was making extensive efforts for marketing the investment potential and opportunities of Pakistan to the foreign investors.

The visits of foreign business delegations to Pakistan have increased and investors delegations from Bahrain and Europe were currently in Pakistan. Furthermore, delegation from Singapore would visit Pakistan next month to explore Pakistan's potential, and to have a meaningful interaction with the private sector.

The substantial increase in the inflow of FDI was an indicator that investor perception about Pakistan was fastly changing. During current financial year, it is expected that FDI inflows will cross $1 billion benchmark.

REMITTANCES UP BY 126 PC

The home remittances in first five months of the current fiscal year (July to November, 2002) stood at $1784.49 million as against $ 789.10 million during the same period last year, depicting "an impressive" increase of 126.14 per cent.

The amount includes cash flows, encashment of Foreign Exchange Bearers Certificates and Foreign Currency Bearer Certificates, Hajj remittances and those from Iraq-Kuwait war affectees.

Out of total remittances received in the country in July-November 2002, workers remittances contributed $ 1655.52 million as against $ 709.06 million during the corresponding period last year, showing increase of 133.48 per cent.

The total amount remitted in November 2002 was $ 351.74 million as compared to $ 259.87 million in November 2001 posting an increase of 35.35 per cent.

POWER RATES CUT UP TO 19 PAISA

The National Electric Power Regulatory Authority on Wednesday reduced electricity rates between 12 to 19 paisa per unit for various categories of consumers under the quarterly automatic fuel adjustment mechanism.

A Nepra announcement said the power tariff for residential consumers and agricultural tubewells has been reduced by 12 paisa per unit, 19 paisa per unit for commercial consumers, 16 paisa per unit for industrial, bulk, railway traction, Azad Kashmir and public lighting and 16 paisa per unit for the KESC.

GOLD PRICES SURGE BY RS108

Domestic gold prices surged to current year's all time high to Rs6,495 per 10 grams, from Rs6,387, up by Rs108 in just one day as a result of persistent increase in global prices.

Rising war jitters further pushed up international gold prices to $347.50 per ounce on Thursday from $341-342 on Wednesday, thus making a direct impact on local gold prices.

KSE REVENUE RISES BY 16 PC

The Karachi Stock Exchange released its annual report and accounts for the year 2002, on Wednesday.

The accounts showed increase of 16 per cent in the revenues of the Exchange for the year ended June 30, 2002 to Rs171.0 million, from Rs147.9 million the previous year.

ICP LOT-B FUND MANAGEMENT

Pakistan Industrial Credit and Investment Corporation (PICIC) has taken over the management of Lot-B Mutual Fund of Investment Corporation of Pakistan (ICP).

PICIC was the highest bidder of Lot-B Mutual Fund, quoting a price of Rs302.5 million during an open bidding held on October 24, in Islamabad.

ADBP

The conversion of Agricultural Development Bank (ADBP) into Zarai Taraqiati Bank Limited (from December 14), would help improve its operational as well as financial efficiency and as a result of coming out of political pressure it will be able to deliver better results.

AZERBAIJANI INVESTMENT

The government is making every effort to facilitate investment in Pakistan by the Azerbaijani entrepreneurs and investors.

This was stated by Federal Minister for Industries and Production Liaquat Ali Jatoi in a meeting with the Ambassador of Azerbaijan to Pakistan, Dr. Eynulla Y. Madatli who called on the minister.

ABAMCO OPEN-ENDED ISLAMIC FUND

ABAMCO Limited has announced that the Securities and Exchange Commission of Pakistan had authorized its open-ended scheme - the UTP-Islamic Fund, which was registered recently.

"This is the first and the only open-ended Islamic Fund, which is being launched by ABAMCO Limited before the end of December 2002," the company said, adding that it would be the third open-ended Mutual Fund of ABAMCO.

CASH SHORTFALL AT RS30BN

The World Bank has estimated that Wapda's cash shortfall will close to Rs30 billion during 2002-03, to be eventually borne by the federal budget in the form of deferred debt service payments.

BALOCHISTAN GLASS

Following the receipt of approval from the Regulators, Balochistan Glass Limited had doubled the company's paid-up capital from Rs55 to Rs110 million in 2001, by the issue of eleven million new shares at face value of Rs5 per share to foreign shareholders, without the issue of right shares to existing shareholders of the company.