| 07 August 2004 | Saturday | 20 Jamadi-us-Saani 1425 |
Banking sector performance
Foreign missions
A 'problem' phone
Mango diseases
PIA shares
KEMC disappointment
Misuse of authority
Magsay say award
Animal-drawn vehicles
KDA officers
Correction
ICJ & Iraq war
Tourism article maps
SPSC exams
CNG rate
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Let us differentiate between small and big investors. A small investor is a person who makes his application via physical option while all those who apply via CDC (Central Depository Company) option are large investors.
The large investors tend to file several hundred applications, as we saw in the case of the PPL subscription, and in this use the accounts of their employees and friends.
As the initial public offer (IPO) of the Pakistan Petroleum Limited offered 10 per cent (68.6 million shares) for sale through the stock market with a green shoe option and a further five per cent through the Privatization Commission, it was oversubscribed due to overwhelming interest from both big and small investors.
Previously, an IPO for OGDC resulted in a total of 97,570 applications being received from the general public amounting to Rs28.12 billion, with the following data:
I think it is for the first time that the green shoe option was introduced for small investors in the OGDC subscription. As big investors did not have this option, the statistics show that the shareholding was as diverse as possible.
However, in the PPL's case, the situation will be in reverse. Big investors are going to take advantage of the single application.
Application Number of Total funds
application rcvd in Rs.
For 1,000 Shares 83,276 2,667,027,485
For multiples of 1,000 shares 14,294 25,453,753,100
Total 97,570 28,120,780,585
Keeping in view the above facts and circumstances, in my opinion the Privatization Commission should give first preference to all those who apply for the minimum 500 shares through physical delivery as small investors have no CDC accounts which is proof of being a small investor.
The second preference should be to those who apply for 500 shares through their CDC sub-account and only after that should the other applicants be entertained. The government should support small investors as this is the reason why the sale of the company is being done through the stock market.
MUHAMMAD SADIQ PATEL
Karachi
Banking sector performance
Banking is considered to be the backbone of any country's financial sector. In Pakistan, the financial sector generally and the banking sector particularly have experienced many unwelcome events, the freezing of foreign currency accounts being a case in point.
In 2003-04, Rs 250 billion credit was disbursed by the private sector for agriculture, SMEs (small and medium enterprises), consumer finance, personal loans and corporate finance.
However, this also means that the system is now greatly exposed to risk, perhaps more so than at any other time in Pakistan's history. The ratio of non-performing loans is on the rise and currently stands at around 30 per cent of the overall loan portfolio of banks. Also, low interest rates have hit the banking industry hard.
The primary reason for the massive amount of non-performing loans is that many of the borrowers make up their financial statements to strengthen their case for a loan.
Second, mortgage deeds, mutations and other similar essential documents (especially in reference to collateral) prove to be wrong when any suit is filed in a court of law leaving the bank with no choice but to bear the loss on its own.
To make matters worse, the banking courts are quite slow in disposing of cases, so much so that banks seeking recovery of loans prefer instead to settle out of court or to write off the debt altogether rather than pay the legal fees.
Therefore, the government of Pakistan and the State Bank should make improvements to the financial system to reduce its exposure to undue risk and to lower the ratio of non-performing loans.
FAROOQ AHMED SHAIKH
Shikarpur
Foreign missions
Through these columns I would like to bring to your notice the great inconvenience citizens of Karachi have to face each day in the name of necessary security measures to protect foreigners and their consulates.
Being the largest city of Pakistan, Karachi houses many consulates of various countries. In the recent days due to the changing world scenario, it is essential to provide security for them. To do so it has been deemed necessary to restrict access of general traffic to certain roads, which surround these consulates.
As such, thousands of citizens are affected each day because some of these consulates are located on important and busy roads. Only the other day, we had to make a large detour to avoid the huge traffic jam on the main Clifton road due to the restricted access on this road.
I ask the authorities, why should thousands of people suffer when this problem is going to be of long-standing duration. My suggestion to the authorities is to relocate these missions to a more secure place like a diplomatic enclave, away from the city centre, similar to the exclusive area for housing consulates and their staff in Islamabad.
Such measures will not only help the citizens of Karachi, but will also provide these consulates with better protection and security.
SYED AHMED FUAD
Karachi
A 'problem' phone
I had recently subscribed to the highly-publicized so-called asaan phone by the PTCL. The company's website advertises it as being user-friendly and ideal for both Internet connectivity and use as a regular phone.
I wish to disclose some "hidden" features of this 'asaan' phone so that would-be subscribers know what is in store for them. First, the connection charge is not Rs 1,350 but 2,050. The PTCL does not provide any telephone set with the connection, even though it is clearly mentioned in the demand note that this will be done.
Dialling a number is not the same as in the conventional phone. The person has to dial at least nine extra digits before he gets through. No brochure or help guide comes with the installation of the phone.
Each prepaid card expires within two months, even if there is a credit balance on it and it hasn't been used up. The line rent is not the same as the normal landline connection. It is Rs 200 for 30 days, which means PTCL automatically deducts approximately Rs 7 every day as line rent.
The line rent keeps accumulating when the credit ends. The entire amount is deducted when the subscriber begins using a fresh card. More often than not, you cannot get through at the first attempt and have to keep re-dialling, the nine extra digits included.
However, no such problem happens if one dials using the regular telephone. There is a "24 hour customer support" line but it seems to exist only on paper because no one ever picks up that number.
The PTCL website claims that this service is ideal for Internet users. Whenever I try to connect to the Internet using this phone, 80 per cent of the time I get disconnected within five minutes.
However, this does not happen if I try and connect through the regular land line. This happened with various Internet service providers. This asaan phone is actually a 'problem phone'.
JIBRAN SYED
Karachi
Mango diseases
It has been reported in the media that hundreds of mango trees in Hyderabad, Mirpurkhas and Sangar districts have been infected and destroyed by an unknown disease or pest.
The affected trees dry out, showing no symptoms of a disease on their aerial parts. Many a dejected mango grower has chopped down his tree after the attack as there seems no way to check this problem.
In my opinion, since mango trees start drying rapidly and soon die, the cause may be soil-borne, possibly a root-infecting parasitic pathogen. A thorough investigation of the soil is needed to determine the cause of the disease and ascertain the possible deficiency of nutritional minerals and fertilizers.
For identification of the causes of disease and its control, it is suggested that a team of plant pathologists, entomologists, and agronomists be constituted to investigate the causal organisms in diseased trees.
A detailed cultural and microscopic study should be carried out to find the pathogen or the deficiency in nutrition, where the nutrients are taken in by means of water. This should be done on an urgent basis as the future of the mango industry in Sindh is at stake.
DR. S.A. JAMIL KHAN
Karachi
PIA shares
Deceptive propaganda by some home-based organizations has time and again duped the common Pakistani of his hard earned money and this sorrowful phenomenon prevails unchecked despite various measures taken by the present government.
One such example concerns none other than the national carrier, PIA, whose shares were open to the public last month at a base value of pak rupee 20.05 per share.
However, there is a continuous down trend in the value of these shares at the Karachi Stock Exchange and now it stands at Rs. 14.25, a slump of 30 per cent and that too even before the allocation of the shares to buyers. This is despite an interesting fact that KSE index has climbed to 6% during the same period.
The Privatisation Commission of Pakistan is headed by a thorough professional, Dr, Hafeez A. Shaikh, and it is time that he looked into the reasons for the continuous fall in PIA share value.
IQBAL MAHDI
Abu Dhabi
KEMC disappointment
I was disappointed to read the details of the news 'Pervaiz fails to satisfy UHS on KEMC issue' (Dawn, July 26). The very caption of the news item is disturbing. Is Chaudhry Pervaiz Elahi, chief minister of Punjab, subordinate to the VC and the chairman, board of governors, University of Health Sciences?
Under what law or rules is the Punjab chief minister supposed to satisfy the two? I salute the wisdom of the CM in declaring the KEMC a university. The main theme of the news revolves around the fear of the UHS that the 'announced' KEMC University will get other medical colleges affiliated to it.
I fail to understand why the KEMC, established in 1864, would like to have colleges affiliated to it, which have a life of six to seven years, with neither traditions nor good academic records.
Some of the students of the colleges affiliated with the UHS are in fact pre-engineering students who switched over or have 200marks less than that of the last man selected in KEMC.
Examples of colleges given the status of universities are the Government College, Lahore, and the Lahore College for Women. Both these colleges which were upgraded to universities have not affiliated any college with them. The merit in both these universities is higher than before.
When the Maclagan Engineering College, Lahore, was upgraded in 1960, to a university, what went wrong? Nothing. Today, University of Engineering and Technology Lahore is the leading institution in Punjab imparting engineering education to around 10,000 students annually.
It is ridiculous to believe that 'the upgradation of the KEMC would mean accommodating the sons and daughters of the rich and influential'. I suggest that the KEM University should be restricted to the King Edward Medical College to achieve the best results. Let the best students compete with each other to compete in the world.
HAFEEZ AKHTER
Lahore
Misuse of authority
Last year, I applied for a "Wara Bandi" for my small holding of agricultural land in Chak No. 42SB, Sargodha, irrigated through RD102346, Lalian distributary of the Lower Jhelum canal.
The SDCO Laluwali sanctioned the Wara Bandi along with dismantling of some unnecessary internal water courses on April 22, 2004 by observing all the prerequisite formalities after serving proper notice and providing full opportunity to the other party to raise objections, if any, but none appeared in spite of receiving the notice well in time.
Thus the Wara Bandi was officially implemented by the revenue section of the Karana Division irrigation department. The officer dealing with the case was transferred and the new officer, who was not authorized to undo the decision of his predecessor, and who could not entertain any appeal since the timeframe for this had expired, went ahead and did just that.
The official not only entertained the time-barred matter but took a one-sided decision, without notice to me. The officer had his decision implemented through the police and by having this whole work monitored through his subordinates.
Will anybody who matters, especially the Punjab minister for irrigation (the division falls in his home constituency) look into the matter and do justice to me?
PROF (RETD) MUHAMMAD BAKHSH CHAUDHRY
Sargodha
Magsay say award
It is a matter of pride that a Pakistani is among winners of this year's Magsaysay Awards. It is a great honour that a human rights activist like Mr I. A. Rehman has been chosen for the award. He has been one of the most indefatigable and determined champions of human rights and civil liberties.
Mr Rehman, also a distinguished journalist, through his writings, his activism and leadership has made an abiding contribution to providing relief and dignity to the long-suffering people of Pakistan.
AMNESTY INTERNATIONAL PAKISTAN
Karachi
Animal-drawn vehicles
A visit to the wholesale markets in Karachi will reveal the extent to which animal-drawn vehicles are used. The poor animals include camels, donkeys and horses some of which are injured or malnourished, but are forced to haul heavy loads through congested and polluted routes. In the posh Defence area donkey tankers are operating to deliver small volumes of water for flats and shops.
Last week it was reported that in a city in Punjab animal-drawn vehicles were prohibited to relieve road congestion. The owners of animal-drawn vehicles are being given mechanized vehicles on easy leasing terms. Why cannot Karachi's city fathers follow suit and banish slow and obsolete modes of transport from the city?
RAFI ADAMJEE
Karachi
KDA officers
With the constitution of the Karachi city government and the absorption of the KDA into this entity, the fate of KDA officers has been sealed. The city government has mostly former KMC officers in positions of authority and former KDA officers have been effectively sidelined.
Even in the allocation of offices at the Civic Centre, the former KMC officers now occupy the larger rooms while the KDA staff have been relegated to makeshift cubicles. This reflects the step-motherly treatment being meted out to former KDA staff.
It is requested that the city nazim change his policy in this regard as it breeds insecurity within his staff.
NAM REHMAN
Karachi
Correction
In the letter 'EPZA road map' (July 27) the phrase within brackets says "exports restricted to 20 per cent", whereas it should have been "exports restricted to 20 per cent to Pakistan". The error is regretted.
EDITOR
ICJ & Iraq war
Noe when the US Senate Committee report in Washington and Lord Butler's report in London have confirmed that the CIA and British intelligence reports of weapons of mass destruction were false, it is time the UN General Assembly took the matter to the International Court of Justice for advising:
i) The withdrawal of US and British occupation forces from Iraq and handing over peacekeeping operations to the United Nations.
ii) Holding of elections for an Iraqi government under UN supervision.
iii) Fixing damages to be paid by the US and Britain to Iraq for the losses inflicted by the attackers.
LATIF QURESHI
Lahore
Tourism article maps
I have read several articles on tourism in your newspaper's Sunday magazine. The writers have often taken great pains to describe the beauty of the areas they visit. They also try to highlight the problems of these areas, especially of those who live there.
Being the wife an army officer, I have had a chance to visit (and also live for prolonged periods) in many of the places that I read about in the tourism articles. However, what is missing in almost all articles is a detailed map of the area being talked about.
This common practice with most foreign magazines on tourism and related topics (refer to National Geographic magazine). I hope this suggestion will be given due consideration.
NOORUS SABAH BAQAR
Lahore
SPSC exams
Some concerns have been raised by those who recently took the Sindh Public Service Commission examinations regarding the credibility of the final results. Accusations have been made that the results were doctored to accommodate favourites and relatives.
In the interest of justice and fair play, the president and the governor of Sindh should take note of this and appoint a judicial commission to look into the matter to ascertain whether criteria other than merit were used in the final selection of the successful candidates.
MUHAMMAD NAWAZ MEERANI
Karachi
CNG rate
Reference to the letter of Mr Afzal Khan of Faisalabad (July 26), I would like to draw his attention towards the new retail price of CNG, which is Rs26 per KG. If Mr Khan uses his calculator and converts KG into M3, it will come to Rs18.63 per M3.
If this is then converted from M3 into litre, it will come to Rs16.95 per litre against the petrol retail price of Rs37.01 per litre. CNG is a cleaner and better fuel available at a 46 per cent lower cost than petrol.
SAMIR GULZAR
Karachi
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