ISLAMABAD, July 29: Saudi Pak Industrial and Agriculture Investment Company, a joint venture of Saudi Arabia and Pakistan, will provide Rs1.825 billion financing to energy, textile, fertilizer and sugar sectors. The decision was taken on Friday in a meeting of the board of directors in Dubai, according to a message received here.

The meeting was presided over by Dr Abdullah T Al-Thenayan, who is also the director general of Arab Company for Livestock Development, Saudi Arabia. The approved amount would be spent by 20 private companies in various projects in manufacturing, textile, fertilizers, sugar, and construction industries. The financing would facilitate the expansion of existing production facilities in these sectors and also establish various new projects.

Saudi Pak has so far provided financing facilities amounting to Rs30.048 billion to Pakistan that include direct equity investment of Rs2.601 billion and term financing of Rs24.721 billion.

The meeting observed that Saudi Pak’s total approvals of financing proposals increased by 19.9 per cent (up to Rs3.314bn) in the first six months of 2005 as compared to Rs2.763bn in the corresponding period last year.

Similarly, the company’s disbursement rose by 19.7 per cent to Rs2.49 billion in the first six months of 2005 as compared to Rs2.08 billion in the corresponding period last year.

The rise in disbursement led to 23.6 per cent increase in mark-up/interest income which touched the figure of Rs449.6 million in the half year ended June 30 as compared to Rs363.8 million in the corresponding period of 2004.