May 14, 2003	Wednesday	Rabi-ul-Awwal 11, 1424

KARACHI, May 13: The Investment Corporation of Pakistan (ICP) will get all its liabilities settled by June 30 next and then it will be handed over to the government to sell it out to interested buyer.

ICP Managing Director Tariq Iqbal Khan while addressing a press conference here on Tuesday, at NIT Board Room, said that the corporation was in process of winding up its operations and now it had only Rs800 million in liability which would be paid back very soon through internal resources.

Giving details of improved financial performance of the corporation, he said that the income of the corporation surged to Rs1,415 million during July-March period of 2002-03 from Rs373 million the same period last year. “The phenomenal increase of Rs1,264 million is recorded on account of sale of management rights of ICP Mutual Funds Lot A, B, and C,” he added.

He said the corporation possessed a net asset value of Rs1.4 billion as of March 31, 2003.

Tariq Iqbal said the ICP management took a policy decision to get rid of the ill-liquid shares in a systematic manner to clean its investment portfolio which resulted in loss of Rs77.5 million.

“Moreover, in pursuance with the decision of federal cabinet to wind up the operations, branches were geared up towards closure of investment accounts. As a consequence of sale of shares, the corporation booked a loss of Rs29.6 million on its investment held under PLS investors’ sharing scheme.”

He said that the administrative expenditure was kept under control, which declined to Rs177 million during July-March period of 2002-03 from Rs243 million the same period last year. Financial charges were also brought down by Rs74 million to Rs87 million during the period under review from Rs161 million in the same period last year.

Elaborating the substantial cut in the financial charges, the ICP managing director said that it became possible due to prudent repayment of entire short-term financing and term deposits from internal resources. “As such the corporation has cleared entire liabilities except government/SBP loans”, he added.

He said that a proposal had been sent to the government and the SBP for repayments of their entire principal amount. “Out of total liability (principal of Rs1,342 million) a sum of Rs648 million has been paid to the SBP and the remaining amount will be paid shortly”.

He further said that the ICP thus ended with a net profit before provision at Rs1,238 million, after taking into account provisions/reversals mainly consisting of Rs600 million on account of severance scheme, and future liabilities of all pensioners and widows.

He said around 200 employees of the corporation had been relieved under the severance scheme and only skeleton staff—67 persons—had been retained to carry out the operations of the corporation smoothly.

The net profit of the ICP stood at Rs653 million. The improved performance contributed to marked impact on equity, which stood at Rs1,243 million (including Rs742.8 million on account of surplus of securities) as at March 31, 2003 against the adverse equity of Rs156.1 million as at June 30, 2002, he said.

The ICP MD, who also manages the National Investment Trust (NIT), said that in the first week of July the results of the NIT would be announced.