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1- GOP RECTIFIES TAX ANOMALIES
2- PERFORMANCE OF PUBLIC SECTOR CORP
3- SUCCESS STORIES OF AUTO AND HOUSE FINANCING
4- STOCK MARKET UPDATE

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PERFORMANCE OF PUBLIC SECTOR CORP

 

Improved performance is attributed to increased production and sales as well as reduction in financial charges

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From SHAMIM AHMED RIZVI,
Islamabad

Sep 06 - 12, 2004
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The financial year 2003-04 has been a good year for the financial health of the Public Sector Corporation under the Ministry of Industry and Production as well as the Pakistan International Airline under the Ministry of Defence.

According to report compiled and made public by the Ministry of Industries and Production as the performance of public sector corporations which started picking up with coming into power of the present government, have performed extremely well during the outgoing financial year. Some corporations like USE, SCCP, SEC, PACO and their units were running in losses and following the economic policies, of the present government and taking steps to improve the efficiency, good governance and reducing non-developmental expenditures these are now out of losses and making profits.

The profit of other corporations have increased manifold during the same period. The production of raw steel of Pakistan Steel Mills increased from 1.015 million metric tons in 2002-03 to 1.024 metric tons in 2003-04. Net sales reflect increase from Rs.22,084 million to Rs24,769 million showing 12 percent increase. Profit depicts an increase from 1,239 million to Rs 6,405 million, showing 417 percent increase.

Improved performance is attributed to increased production and sales as well reduction in financial charges as result of financial restructuring. The work is already in hand to expand the existing capacity of Pakistan Steel from 1.1 million tons per annum to 1.5 million tons through BMRE. Similarly simultaneously steps have been taken to expand capacity to 3 million tons per annum, the report, added. Following in the position presently prevailing in the various public sector organizations.

NATIONAL FERTILIZER CORPORATION (NFC)

The corporation earned a profit of Rs. 1395 .23 million in 2003-04 which is 267.44 percent high as compared to the previous year. The sales of the units of the corporation during 2003-04 were 18.11 percent high as compared to 2002-03.

Aggregate production of Pak Arab Fertilizer increased from 742,173 metric tons in 2002-03 to 836,448 metric tons in 2003-04, which is 13 percent high. Net sales increased from Rs.4,634 million to Rs. 7,097 million (53 percent) during the current year 2003-04. Profit depicts increase from Rs 1,794 million, which is 61 percent high.

Production of single super phosphate of Lyallpur Chemicals and Fertilizer Limited shown increase from 74,500 metric tons to 78,385 metric tons, which is 5 percent high. Net sales shows increase from Rs.366 million to Rs 515 million which is 41 percent higher. Profit depicts increase from Rs.2 million to Rs. 18 million which is 800 percent high. The performance is attributed to higher production and sales activities.

The production of Granulated Single Super Phosphate of Hazara Phosphate increased from 68,172 metric tons to 89,340 metric tons, up 31 percent. Net sales increased from Rs. 376 million to Rs 611 million which is 63 percent high. Profit increased from Rs. 2 million to Rs. 9 million (350 percent) during the current year 2003-04.

Production of Urea of Pak American Fertilizer increased from 289,691 metric tons to 310,717 metric tons, which is 7 percent higher. Net sales increased from 1,901 million to Rs 2,658 million, which is 40 percent high. The company earned profit of Rs 102 million during 2003-04 against loss to Rs 599 million suffered during last year.

STATE CEMENT CORPORATION OF PAKISTAN (SCCP)

 

 

The income dividend, interest and other of holding corporation increased from Rs 158 million to Rs 425 million which is 169 percent high. Profit of hodling corporation depicts increase from Rs. 101 million to Rs 395 million which is 291 percent higher.

The production of one and only unit of SCCP, Javedan Cement Limited increased from 218,149 metric tons to 447,787 metric tons, which is 105 percent higher. The company earned profit of Rs. 126 million in 2003-04 against last year loss of Rs. 38 million, which is 432 percent high.

STATE ENGINEERING CORPORATION (SEC)

The production of Machine Tool Factory increased from Rs 527 million to Rs 557 million which is 5.7 percent. Net sales increased from Rs 642 million to Rs 842 million, 31 percent high during 2003-04. The company earned profit of Rs. 21 million during the 2003-04 against last year loss of Rs 11 million which is 291 percent high. Improved performance is attributed to successful product diversification as well as decrease input cost like stores and spares and energy etc and decrease operating. Through implementation of revamping programs, PMTF plans to start production of motorcycle parts and manufacturing of textile machinery in collaboration with China.

PAKISTAN AUTOMOBILE CORPORATION (PACO)

The corporation earned profit of Rs 40 million during 2003-04 against last year loss of Rs 3 million. Improvement was due to decline of other expenses, Utility Stores Corporation (USC).

The corporation earned a profit of Rs. 141.09 million in 2003-04 as compared to Rs. 68.87 million in 2002-03. The corporation was in losses but now making profit.

EXPORT PROCESSING ZONES AUTHORITY (EPZA)

The income of EPZA increased from 1,599,709 dollars in 2002-03 to 2,054,463 dollars in 2003-04. The income increased by 28 percent during 2003-04 as compared to previous year.

INDUSTRIAL GROWTH.

The industrial growth of 100 large scale manufacturing items recorded 18.08 percent which is highest in the decade. The main items related to food beverages and tobacco, textile sector, jute goods, leather, paper printing and publishing. Wood furniture, pharmaceuticals, chemicals, petroleum products, tyres and tubes, non metallic mineral products, iron and steel, engineering, electrical and automobile industry.

PAKISTAN INTERNATIONAL AIRLINE (PIA)

According to a press release of the PIA, the national flag carrier has earned an after tax profit of Rs. 1.4 million in 2003-04. This is despite the fact that the airline had to absorb an excessive fuel bill of over Rs 1.2 billion due to increase in oil prices in the international market. The PRA Board of Directors was informed last week that even under these adverse conditions, the airline has maintained all basic parameters and is poised to continue its push for achieving commendable growth levels. The airline is, therefore, confident about its future growth and progress, the press release said.

Resorting to a strategy of chasing a challenging growth target, fares have been revised upwards, international and domestic distribution channels are being expanded for a wider and upgraded network for improved market share and the airline's fleet plan is being revised, which will be finalized by September 2004 for induction of fuel-efficient aircraft, the press release added.

 

 

It is encouraging that PIA has now been turned into a profitable organization while a number of steps have been taken to improve in flight service. There are also plans to change the livery (logo and the colour scheme) of the airplanes in PIA's fleet. In an effort to make PIA more customer focused, the airlines started its first Contact Centre equipped with modern facilities to serve as a single point of contact for all customers. It is accessible from all the cities and provides facilities pertaining to flight information, seat reservation, pre-reserve seating and advanced selection of in-flight meals menus. Programmes are also in hand for incorporation of the latest technology in core operations of PIA is making enormous contribution in airlifting of pilgrims and export of perishable items. We hope that with sustained efforts, PIA cannot only achieve a place of prominence in the world but also promote Pakistan's image as an attractive destination for tourists.