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COVER STORY

OIL

June 09 - 15, 2003  
ISSUE # 23  

The POL industry in Pakistan has shown robust growth reflected in their extra-ordinary profits earned by all major oil marketing companies during the current fiscal 2002-2003. This outstanding performance by the oil sector is attributed to the policy of deregulation, liberalization and privatization of the oil sector. Noticeable increase in the margin of the oil dealers from 0.5 percent to 4 percent, permission to grant license to the oil marketing companies played a key role in the growth of the oil marketing sector. Pakistan State Oil, which is about to be privatized shortly, is going to enhance the role of private sector to a great extent. Experts are of the opinion that 

this would be the event in the history of oil regime in Pakistan because so far it was ruled by the public

sector. Attractive financial results and enhanced role of private sector is expected to attract more foreign investment in Pakistan.

 

 

BANK DEPOSITS
Deposits of commercial banks have grown substantially since 2001. The analysis of the selected banks show that about half of these have invested, mainly in government securities, and the other disbursed as advances. However, it is believed that borrowing by private sector has registered substantial growth, subsequent to publishing of annual reports.

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TWO-WHEELERS
Competition can do magic. It has forced the three traditional motorcycle manufacturers, all Japanese; Honda, Yahama and Suzuki, to slash the prices of their respective models substantially.