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NLC pays off all debts

August 13, 2012

ISLAMABAD, Aug 13: After paying all loans, the National Logistics Cell (NLC) has become a debt-free organisation since July 3, 2012.

Meanwhile, the National Logistics Board (NLB) earned 11.2 per cent net profit during 2011-12.

Giving a briefing to Finance Minister Dr Abdul Hafeez Shaikh on Monday, DG NLC Major General Junaid Rehmat highlighted the key performance, budget requirements and other issues faced by NLB.

“After clearing all its debts, NLC is planning to enter production of trucks,” DG NLC said.

However, the meeting stopped short of reaching any conclusion on the matter of paying Rs700 million to Railways for repair of locomotives and it was decided that secretary finance would hold a separate meeting of Pakistan Railway and NLB to resolve the issue.

The meeting also deliberated on the proposal of NLB regarding closure of joint venture agreement of NLC with other company on construction project in Qatar and to get full management and financial control of the projects.

Dr Shaikh approved one part of the proposal to pay Qatari Riyal 10 million to pay off liabilities of the company and to inject fresh capital to start working independently.

However, regarding another proposal to pay off QR8.5 million to the other company for closure of joint venture agreement with NLB, the meeting decided that NLB should work further on different other aspects of financial arrangements with its joint ventured company.

The meeting also in principle approved the acquisition of Ultimate Building Machine from Military Engineering Services (MES) at a cost of Rs250 million. The cost of machine will be adjusted by MES on construction contracts it offers to NLC.

The meeting gave principle approval on closure of a joint venture in Karachi Financial Tower Project; the NLB presented a settlement plan with its joint venture companies working on the projects.

NLB also approved Rs35 billion budget for NLC for 2012-13. The operating expenditures are estimated at Rs29bn including capital investment of Rs7.5 billion. The net profit is projected at Rs5.4 billion.