27 January 2004	Tuesday	04 Zilhaj 1424

ISLAMABAD, Jan 26: The Commonwealth Development Corporation (CDC) of London has expressed its interest in setting up an institution for fund management for institutional investors , besides investing directly in various sectors in Pakistan.

This was stated by Earl Cairns, Chairman of CDC, who held a meeting with Finance Minister Shaukat Aziz here on Monday. Mr Cairns said his organization would explore investment opportunities in power, oil and gas, telecommunications and would also participate in the privatization of state-owned units.

The CDC would also invest in financial services with particular focus on asset management, private equity and venture capital. He appreciated Pakistan's financial management and structural reforms and said Pakistan had achieved macroeconomic growth, which in turn had created favourable investment climate for investors.

He said the CDC would continue to increase its portfolio in Pakistan and would participate in new ventures, privatized companies and set up an institution in Pakistan for fund management for institutional investors.

Mr Cairns told the finance minister that the fund management of CDC was in the process of being privatized. The CDC will set up a new asset management company in Pakistan that will help further develop fund management business in Pakistan.

He said the CDC's privatization would enable it to manage its over $2 billion global portfolio in an efficient manner. He also said the CDC was in the process of creating South Asia Equity Partner funds to increase its investment in the region.

The CDC chief evinced special interest in the management of sick units and discussed assets management and hoped that the CDC would offer its expertise for restructuring private sector units.

Mr Cairns also appreciated the government's plan to float Euro bonds as it would bring Pakistan on international economic radar screen and attract more investment.

Finance Minister Shaukat Aziz said that it was the endeavour of the government to promote investment management business in the country as part of the second-generation reforms.

The government would, therefore, welcome CDC's investment in Pakistan as it enjoyed an excellent international reputation. He encouraged the CDC to participate in the equity management, mutual funds, bid for privatization of upcoming units and hoped that it would gradually increase its portfolio in the country.

He said Pakistan attached priority to private equity, venture capital and mutual fund and would encourage investment in these fields. The minister stated that as part of the second-generation reforms, the government was encouraging development of asset management business and investment banking. Both these areas have a lot of potential and the government is encouraging this sector to provide more access to capital for the private sector and alternative investment opportunities for individual savers and investors.

Mr Aziz said Pakistan's capital markets and stock exchanges had been one of the best performing markets in the world and it was time that "we open new avenues like investment management, private equity, value capital, corporate finance and merger and acquisition".

"There is a lot of potentials in these fields and they would provide an impetus for the private sector investment as well as alternatives for individuals and institutional investors."

The finance minister said Pakistan offered a level-playing field and transparent policies for investors and would always encourage their participation in all areas of financial services.