Keeping in view the national interest, PICIC has
decided to develop innovative financial packages for individuals and
organizations interested in setting up environment-friendly projects and
has accordingly introduced yet another product — PICIC CNG station
A step towards PICIC's mission of promoting
environmental consciousness, PICIC CNG is a value-added product to
provide lease financing for the procurement of machinery for the CNG
filling station. Under this Comprehensive Package, PICIC would provide
financial assistance to existing petrol pumps and/or new sites, to
establish a CNG filling station. Besides conventional finance leases,
customers can also avail operating lease facility under this scheme.
PICIC's engineers are geared to provide technical
assistance with respect to the sizing, specification and selection of
the CNG and power generation equipment, if the client so desires. PICIC
will also provide procedural guidance to the clients to the extent of
educating them about the process for obtaining required licenses,
permissions and certifications.
On the basis of CNG consumption, Pakistan stands at
number four in the world and number one in Asia. During last four years,
around Rs. 4 billion have been invested in the CNG sector. So far 500
CNG stations have been established and around 400,000 vehicles have been
converted to CNG in different parts of the country. However, the rate at
which the number of CNG operated vehicles is increasing in the country,
there still is a great potential for investment in this sector. This
demand for CNG filling stations will register a tremendous boost if the
CNG conversion kits for diesel engines are made available at reasonable
Focused at branding PICIC as the country's leading
financial institution promoting the use of environment-friendly fuels
and technologies, this program is also anticipated to reinforce
government's efforts for reducing reliance on imported petroleum
products which accounts for a sizable portion of our import bill.
CNG FINANCING SCHEME
To get rid of the pollution in the country, PICIC
Pakistan's Leading Financial Institution has announced launching of CNG
The establishment of CNG is a step forward to clean
Pakistan from pollution and to move forward to a green and greater
Pakistan. The scheme is designed not only to reduce pollution and
environmental hazards but the main theme of scheme is to increase
foreign exchange by decreasing import bill of the petroleum products in
the country. PICIC (under this comprehensive financing package would
provided Lease Financing facility existing petrol pumps and new sites
for establishing CNG Filling Stations.
This would incorporate every piece of equipment from
gas compressor to dispenser as well as power generator to operate the
station which can be made available through lease finance land and civil
works is more or less the responsibility of the applicant, however
financing as permissible under rules can be considered on case to case
basis. Few projects may also require us to issue guarantee to the gas
authorities which can also be considered, if felt appropriate.
FULL TECHNICAL ASSISTANCE: Through
our arrangements with leading equipment suppliers and consultants, we
can provide technical assistance with respect to the sizing and
specification of the equipment, if the client so desires. However we
expect that most of the applicants would approach us after finalizing
the equipment, its size and the supplier.
COMPLETE PROCEDURAL GUIDANCE: Setting
up a CNG station is a complicated process with respect to the
acquisition of required licenses, permissions and NOCs. To fulfill our
promise of providing procedural guidance, we would provide advisory
services to our clients only to the extent of informing them about the
required licenses, permissions and certifications in chronological
CUSTOMER FRIENDLY TERMS:
* Term: 3 to 5
* LKM: Minimum
Competitive (KIBOR based)
* No Financing
* No Early
Termination Charges (after one year of lease)
components like Cooling Towers will also be financed.
PICIC (DFI) — THE FINANCIAL POWER HOUSE
Pakistan Industrial Credit and Investment Corporation
Ltd. (PICIC) is a pioneer development finance institution and has played
a key role in the industrial development and creation of industrial
infrastructure in Pakistan. PICIC is the largest private sector
development finance institution. It was established by Pakistani and
Foreign investors with the assistance of World Bank for providing
development finance to private sector.
To meet the challenges of the changing national and
global business scenario, we have embarked upon a five-year business
diversification plan, "PICIC VISION 2005". To implement its
future plans, PICIC prepared "VISION 2005". In the line with
first year's target, PICIC acquired 60% shares along with management
control of former Gulf Commercial Bank (now PICIC Commercial Bank Ltd.)
Acquired management rights of Investment Corporation of Pakistan (ICP)
Lot B and SEMF Mutual Funds. PICIC has incorporated Assets Management
Company with paid up capital of Rs 3000 million. All the targets
envisaged in PICIC VISION 2005 were achieved up to December 2003.
To aware that clients have a diversified financial
needs ranging from short-term to long-term investment, managing
investment portfolio and above all hedging the risk. However, they have
to approach different services providers, which consume a lot of their
time and energies.
The vision aims to achieve diversification of
business in related financial fields to make PICIC a "True
Financial Supermarket". Currently we are the Largest Fund
Management Institution in the Private Sector of Pakistan.
PICIC has acquired a license for establishing a
general insurance company in Pakistan and which is now operative.
The launching of general insurance company will
accomplish the ambitious plan of a making PICIC a "financial
supermarket", conceived by the managing director of PICIC Muhammad
Ali Khoja under his "Vision 2005" in 2000.
The next step would be to launch a life insurance
company, for which planning is underway.
Khoja, the man behind this splendid success said that
most of the initiatives outlined in "Vision 2005" have been
achieved. PICIC has made its position in the leasing, commercial
banking, consumer banking, asset management and house financing
"The idea of financial supermarket came to my
mind after realizing the diversified financial needs of my clients
ranging from short-term borrowing to long-term investment, managing
investment portfolio and above all hedging the risk", he noted.
"They had to approach different services
providers, which consume a lot of their time and energies while we offer
all these services under one roof", Khoja said.
He said the management was now working on a new
five-year plan "Vision 2008". Vision 2008 will identify new
businesses for PICIC including investment in modaraba capital, life
insurance and foundation of a university in affiliation with reputed
educational institutions abroad.
He has taken his chances and seized opportunities to
make PICIC "Truly a Financial Super Market".
When he took over PICIC in 1996, he raised the slogan
"Recover PICIC Through Recoveries". This slogan coupled with
the generous incentives energized his people and the results were
In seven years, PICIC recovered Rs 26.17 billion at
an average of Rs. 3.7 billion a year. Not only was the hemorrhage
stopped but fast recoveries pumped in additional resources.
It may be noted that until June 2003, PICIC had
financed 2,010 industrial projects all over Pakistan with the gross
financial assistance of Rs. 38.412 billion.
PICIC had regained financial health and repaid its
financial obligation and is now free of any interest-based obligation to
the Government of Pakistan.
PICIC's financial soundness can be judged from it
current rating of "AA"' and "A1+" by the Pakistan
Credit Rating Agency (PACRA) for long-term and short-term respectively.
These rating denote a very low expectation of credit risk and also a
very strong capacity for timely payment of financial commitments. The
rating also reflects the considerable improvement in the earning
potential of the corporation, given the improving risk profile of loan
and diversification in both the asset base, as well as the revenue base.
Different from a traditional banker, merely balancing
risk and return, Khoja is a man of vision. He is concerned of growth
imbalances in Pakistan's economy where the GDP was grown by more than 6%
while agriculture, which is a vital sector, grows by only 2.6 percent.
Industrial growth, on the contrary, developed by more
than 15 percent. "The government should make comprehensive efforts
for agricultural growth. It is high time that not only the government,
but private sectors also come forward with an ambitious plan for
agricultural growth specially when our agro produces are going to get
better prices under WTO", he observed.
The corporation is also offering housing finance
under an attractive programme "Home for Every One", besides
providing small business loan, which enables the entrepreneurs to
establish or expand small business and meet their working capital
Similarly, PICIC Investment Loan enables to further
optimize investment by pledging certificates of investment,
"A" rated term finance certificates, mutual fund certificates,
and shares of PICIC approved listed companies registered with Central
Depository Company (CDC) and other Government Securities to meet
immediate financial needs.
PICIC is contemplating to start investment advisory
services in all its branches. Professionally qualified and experienced
investment advisors will guide potential investors for investment in
deposit schemes and assist in obtaining term-loan and lease financing.
PICIC is also planning to launch two new closed-end Mutual Funds worth
one billion rupee each to cater to the needs of all types of investors
including Pensioners/Widows/Senior citizens who desire regular income
taking moderate risk and have been badly hit by low interest
environment. PICIC has been short listed by the Privatization Commission
to participate in the bidding for the acquisition of National Investment
Trust Limited (NIT).
The achievements already made by PICIC but there is
no room for complacency. Achieving the new milestones was not possible
without the dedicated efforts of each and every employee. But a lot more
has to be done. To achieve higher GDP growth rate, more industrial units
have to be established and the existing units have to be revamped to
further improve the quality standards. Creation of new job opportunities
is also a must for poverty alleviation.