ISLAMABAD, April 23: The Board of Directors of Saudi Pak Industrial and Agricultural Investment Company has approved a total financing of Rs597.5 million to 11 companies in manufacturing and financial sectors. According to a press release issued here on Saturday, the companies in the manufacturing sector belong to energy, textile, cement, sugar and construction industries. The financing will facilitate expansion of existing production facilities besides setting up new projects. The projects financed by Saudi Pak will generate new employment opportunities and add value to gross domestic product.
The board noted with satisfaction the financial results of the Company for the quarter ended March 31, 2005.
The board meeting was held in Karachi on Friday under the Chairmanship of Dr. Abdullah T. Al-Thenayan, who is also Director General of Arab Company for Livestock Development, Kingdom of Saudi Arabia.
During the period under review, the Company maintained steady growth in its operations. Total approvals of financing proposals increased to Rs1,110 million as compared to Rs1,045 million in the same period of the proceeding year. Likewise, disbursements rose to Rs1,157m from Rs639 million.
The increase in disbursements led to 16.9 per cent rise in mark up/interest income at Rs139.4 million in the quarter ended March 31, 2005 as compared to Rs119.2 million in the corresponding period of the last year. Capital market operations contributed substantially to the profit which increased to Rs453.6 million or by 132.2 per cent from Rs193.7 million in the corresponding period of the last year.
Since inception Saudi Pak has provided financing facilities of Rs28,189.2 million, which includes direct equity investment of Rs2,445.9 million, and term financing of Rs23,017.1 million. Further, the underwriting of public issues of shares and guarantees has also been provided for a total amount of Rs2,726.2 million. Saudi Pak maintained long term entity of AA+ (Double A plus) and short term entity rating Al+ (A one plus) with stable outlook for the fifth consecutive year. The rating has been awarded by JCR-VIS Credit Rating Company, which is affiliated with Japan Credit Rating Company.
Saudi Pak, a joint venture of Kingdom of Saudi Arabia and Islamic Republic of Pakistan, is playing an important role in promoting brotherly relations between the people of the two countries.
It is committed to accelerating industrial development in Pakistan by providing loans and investment facilities to industrial projects sponsored by private sector. Its financing is spread over all the key economic sectors including chemicals, engineering, textile, cement, petroleum and communications, etc.
The paid up capital of the company is Rs2 billion held in equal proportion by the Kingdom of Saudi Arabia and the government of Pakistan.
The board expressed satisfaction over the role performed by Saudi Pak in promoting growth of industrial sector in Pakistan.
