Pollution-free environment

Sep 20 - 26, 2004

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 financing

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 prices.

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.


To get rid of the pollution in the country, PICIC Pakistan's Leading Financial Institution has announced launching of CNG Financing Scheme.

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 order.


* Term: 3 to 5 years
* LKM: Minimum of 10%
* IRR: Competitive (KIBOR based)
* No Financing Limit
* Nominal Processing Fee:
* Personalized Service
* No Early Termination Charges (after one year of lease)
Local components like Cooling Towers will also be financed.


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 business.

"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 astonishing.

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 requirements effectively.

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.