KARACHI, Jan 16: Pak-Oman Investment Company (Pvt) Limited — a Rs1.5 billion, joint venture project between Sultanate-e-Oman and Government of Pakistan is all set to begin operations.

Zafar Iqbal, managing director of the company told Dawn on Wednesday that the paid-up capital of $25 million had been fully subscribed — the two countries taking up equal stake of $12.5 million each. “A formal launching of the project is likely to be made at the hands of the Finance Minister some times by the end of February”, Zafar Iqbal said.

On Saturday last, January 12, the second meeting of the Board of Directors was held in Muscat, Oman, at which the Business Plan and the finance and investment strategy of the company for the year 2002, was finalized.

Three members on the six-member board of directors of the company including the Chairman Yahya Bin Said Bin Abdullah Al-Jabri, represent the Omani interest, while the other three directors including the Managing Director, have been nominated by the Government of Pakistan. Waqar Masood Khan and Humayun Murad from Pakistani side and Nasser Bin Khamis Al-Jashmi and Ahmed S. Al-Wahaibi from Oman were present at the second board meeting.

Zafar Iqbal said that the seeds of the project were sown during the visit of the ruler of Oman His Majesty Sultan Qaboos Bin Said Al-Moazzam to Pakistan in April last year.

Pak-Oman Investment Company has been modelled on the pattern of the two existing such joint-ventures with Muslim countries: Pak- Libya Holding Company (pvt) Limited and Kuwait Investment Company (Pvt) Limited.

The company is envisaged to operate in an extensive area. These would cover project financing — specifically the agro-based industries; lease financing, including the operation and leverage lease; capital market operations — both equity and debt market; treasury operations; venture capital and non-fund based activities, which would include issuance of guarantees, undertaking financial advisory and corporate finance.

Addressing the second board meeting, the company chairman was stated to have said: “We aim to remain highly focused and will invest and finance expansion of projects which are managed and sponsored by creditable business names. We will also focus on small and medium sized projects which will be part of our specific area of business, as elaborated in our Business Plan. Such areas include Agro based industry, fisheries, which will bring development and economic prosperity to the community”.

Analyst say that by the look of it, the object clause of the company encompasses all financial activities, except possibly the commercial banking. “It has to be seen whether the company is treated by the Regulators as a banking finance company or a non- banking finance company”, said one analyst, explaining that in case of the former — under the new regulations — it would come under the purview of the State Bank of Pakistan, and in case of the latter, it would fall within the jurisdiction of the Securities and Exchange Commission of Pakistan.

Nothing specific has been mentioned about its long term possible interest in the Gwadar deep-sea port, but analysts do not rule out such a possibility.

The managing director said that the company would promote economic, business and trade relations between the two countries, adding that its two-pronged strategy is to attract cross border investment in Pakistan, as well as provide opportunities for increased Pakistan’s business with Oman.

Pakistan has already managed to forge comparably strong trade relations with Oman. According to the SBP Annual Report-2001, exports to the Sultanate during the year were valued at $44 million, which stood fourth among the 13 countries categorized by the Bank among “Asian countries” — after exports worth $626 million to UAE; $273 million to Saudi Arabia and $46 million to Kuwait.