KARACHI, Oct 15: The Employees Old-Age Benefits Institution (EOBI) has recorded an incredible income of Rs658.097 million on investment in equity during first quarter (July-Sept) of current fiscal.

The institute, which made its debut into capital market last year, had an opening balance of Rs1.218 billion in equity investment at the start of current fiscal. However, on fresh purchases during first quarter total investment in equity rose to Rs2.393 billion.

During period under review the EOBI has realized capital gain to the tune of Rs600 million on its equity investment whereas income (realized) on dividend stood at Rs18.306 million. Income out of expected capital gain on portfolios estimated at Rs16.201 million and from expected dividend at Rs39.985 million.

The Institution has also made a fabulous growth of around 49.90 per cent in total investment income on realizing Rs3.144 billion as against Rs2.098 billion made in the corresponding period last year.

Similarly, there has been 69.43 per cent rise in investment at Rs3.580 billion during the period under review (July-Sept), as against Rs2.113 billion in the same period last year.

The pro-active role in capital market as well as in other modes and tools of investments, including government securities, certificates of investments (COIs), term finance certificates (TFCs), the EOBI has become second largest fund manager, after State Life Insurance Corporation (SLIC) of the country.

According to official figures the institution held total investment of over Rs71 billion at the end of first quarter (Sept 30, 2003), against SLIC’s investment standing at Rs100 billion. This included Rs658.097 million as income from equity. The return on investment in equity comes to around 55.01 per cent, official sources told Dawn.

The Institution with the co-operation of the Punjab government recovered Rs179 million from defunct Punjab Road Transport Corporation (PRTC) on account of outstanding arrears towards workers contribution. The EOBI has also recovered 80 per cent of the swindled amount through NAB court order.

The chairman EOBI Shafi Malik told Dawn that a magnificent trading house has been set up at the ex-Awami Markaz for investment and management of its fund. The office is built in well-designed layout and equipped with latest hardware and software to keep a pace with fast movement in capital market.

He further said that highly qualified and experienced people are running this trading house prepared to face the challenges emerging from open market mechanism. Presently, he said the money market was confronted with multiple problems — excess liquidity, low interest rates, limited investment options, and huge upcoming maturities.

According to the latest Economic Survey, Shafi Malik said: “how to raise investment remains the major challenge for the government in the short-to-medium terms.”

The initiative of the Institution, he said, is not only a unique turnaround and a signpost for quality fund management but can also serve as milestone for other public sector organizations.