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1- IFC EXPANDS PAKISTAN OPERATIONS
2- REVENUE COLLECTION
3- BOOM IN CORPORATE SECTOR
4- THE PRIVATIZATION OF PPL
5- POWER THEFT
6- THIRD PARTY INSURANCE
7- WHAT WOULD YOUR CUSTOMER PREFER: A CALL OR A CONTACT?

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BOOM IN CORPORATE SECTOR

 

The last month of the outgoing financial year witnessed a rather extraordinary expansion

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From SHAMIM AHMED RIZVI, 
Islamabad

July 12 - 18, 2004
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The Corporate Sector has witnessed an accelerated growth during the outgoing financial year (2003-04) showing an increase of over 42 percent in comparison with the previous year. During the year, 2208 new companies were registered with the Securities and Exchange Commission of Pakistan (SECP) against only 1553 during the previous year.

The last month of the outgoing financial year (June 2004) witnessed a rather extraordinary expansion as 269 new companies were registered during the month against 159 in May 2004 showing an increase of 69 percent.

Briefing the journalist on the subject in his office in Islamabad, the Commissioner, SEC, Mr. Abdul Rehman Qureshi said that the growth in new incorporation has been quite impressive and went beyond expectations. Maintaining a similar trend, the Corporate Sector is expected to achieve still higher growth level in future as well. He said the number of registration of new companies each month surpasses the records of the previous years, which is a clear indication of the growing trend in the corporate sector.

Of the 269 companies registered during the month, 263 companies were limited by shares, including 9 public unlisted companies, 247 private companies, and 7 single member companies. Highest company incorporation during the month was reported from CRO Lahore with a figure of 95 companies (35 percent of new incorporation), followed by Karachi and Islamabad incorporating totals of 89 and 60 companies respectively. The Company Registration Offices of Faisalabad, Quetta, Multan and Peshawar registered 9, 5, 3 and 8 companies respectively. The aggregate authorized capital of 263 limited by shares companies registered during June 2004 amounted to Rs. 10,025 million; 247 private companies with an authorized capital of Rs. 4,767.7 million, 7 Single Member Companies and 9 public unlisted companies have an authorized capital of Rs. 20.7 million and Rs. 5,236.6 million respectively.

The sector-wise classification during June 2004 reveals that most dominant sector in terms of number of new registration is Textile Composite whereby 15 companies were registered, followed by 12 companies registered in the Communication other than the Transport and Information Technology sectors each, 11 companies registered in Housing and Real Estate and Food and Allied sectors each, etc.

The growing trend in companies' incorporation characterized the whole past year whereby it is observed that the overall expansion is contributed by 42 percent increase during the financial year July 1, 2003 to June 30, 2004 in comparison with the previous financial year. Over the past five years, the corporate sector has seen a continuous and steady growth in year-wise new incorporation, whereby a considerable number of 2,2087 companies were registered in this financial year as against 1,073 companies incorporated in 1999-2000, reflecting an overall growth of 105 percent, and an average growth of 21 percent every year. The growth in new incorporation has been quite impressive and went beyond expectation. Maintaining a similar trend, the corporate sector is expected to achieve still higher growth levels in future as well.

Following the records of 234 and 207 companies registered under the Companies Ordinance, 1984 during April and May 2004 respectively, the growing trend in company incorporation continued in the month of June 2004. During June 2004, a total of 269 companies were registered under the Companies Ordinance, 1984 as compared with 159 companies during the corresponding month of the previous year, showing an increase of 69 percent.

The overall month-wise incorporation during the year in comparison with the previous year depicted in the table shown.

 

 

COMPANIES KIND & AUTHORIZED CAPITAL

CATEGORY OF COMPANIES

NO. OF COMPANIES

AUTHORIZED CAPITAL
(Pak Rs in million)

Public Unlisted

9

5,236.6

Private Company

247

4,767.7

Single Member Company

7

20.7

TOTAL

263

10,025

 

 

The analysis of new registration by Sectoral Classification during the month of June 2004 brings out the statistics as follows:-

NO.

SECTOR NAME
NUMBER OF COMPANIES

Brokerage Houses

3

Textile Companies

15

Textile Weaving

2

Fuel and Energy

4

Engineering

4

Auto and Allied

3

Transport

9

Communication other than transport

12

Chemical and Pharmaceutical

10

Paper and Board

3

Construction

10

Housing and Real Estate

11

Food and Allied

11

Information Technology

12

Security Services

3

Cables and Electrical Goods

8

Leather and Tanneries

2

Modaraba Management Companies

1

Miscellaneous

135

Investment Advisory Companies

1

Power General

5

Sugar and Allied

1

Vanaspati and Allied

1

Corporate Agricultural Framing

3

TOTAL COMPANIES

269

 


 

CORPORATE SECTOR GROWTH

PERIOD

NO. OF COMPANIES

INCREASE

1. July 1st, 2003 to June 30th, 2004

2,208

42%

2. July 1st, 2002 to June 30th, 2003

1,553

31%

3. July 1st, 2001 to June 30th, 2002

1,183

1%

4. July 1st, 2000 to June 30th, 2001

1,169

9%

5. July 1st, 1999 to June 30th, 2000

1,073