KARACHI, Jan 19: The National Investment Trust (NIT) achieved highest net assets value (NAV) of its history while managing to resolve all issues pertaining to its privatization.

This was stated by NIT chairman Tariq Iqbal Khan while addressing an International Conference on Investment Banking.

Speaking on the issue of fund management in low interest rate environment, he said that the largest open-end mutual fund during the last two years had improved its rating from BBB in 2001 to AA in 2003 while it also became best performing mutual fund of the year 2003.

He said the landmark achievements could become possible by adherence to clarity with regard to priorities and preserve the interest of stakeholders, besides sticking to core objectives and competencies.

Aggressive provision in 2001-02 and 2002-03 amounting to Rs4.6 billion was made and active involvement of NIT Board in policy framework was ensured. In case of Pakistan, he said, the low interest environment had mainly been caused because of improved macroeconomic policies of the government.

Hence as a result of this shift in policies, rent seeking, growth of parallel economy and public indebtedness have not only been checked but effectively curtailed.

He said the result was higher liquidity in the economy which had been further increased because of enhanced remittances during the last two years.

As a consequence we found ourselves in a situation where great deal of financial resources were chasing fewer gainful investment opportunities.

Mr Tariq said that current scenario of high liquidity and low interest rates would induce investment in our business, industry and commerce and as a result our production in industry would pick up while farm sector would be offered better and stable prices which may lead to enhanced agriculture production.

He said our exporters were expected to do much better as $13 billion export target in this buoyant environment looks much more feasible. In money market, he said, mutual funds would be poised to reap a better harvest of returns as compared to other financial institutions. Once the overall economic activity picks up, the saving rates would also improve as there would be greater inducement for savings in an improved economic climate.-APP