Saudi Pak registers 132pc increase in profit in Pakistan
Pakistan Times Business & Commerce Desk

ISLAMABAD: Saudi Pak Industrial and Agricultural Investment Company (Pvt) Limited, a joint venture of Saudi Arabia and Pakistan, maintained steady growth in its operations during first quarter of 2005.

The Company earned Rs 453.6 million in profit during January-March period of 2005, showing 132.2 percent increase when compared with Rs 193.7 million profit realized in the same period of last year.

It was noted with satisfaction in a meeting of the company’s Board of Directors held in Karachi on Friday with Dr. Abdullah T. Al-Thenayan in chair, who is also Director General of Arab Company for Livestock Development, Saudi Arabia, according to a Saudi Pak news release issued here Saturday.

The Board expressed its satisfaction over the financial results of the Company for the quarter ended March 31, 2005.

During the period under review, the Company maintained steady growth in its operations with total approvals of financing proposals increased to Rs. 1,110 million as compared to Rs 1,045 million in the same period of the proceeding year.

Likewise, disbursements rose to Rs 1,157 million from Rs 639 million.

The increase in disbursements led to 16.9 percent rise in mark up/interest income at Rs 139.4 million in the quarter ended March 31, 2005 as compared to Rs 119.2 million in the corresponding period of the last year.

Capital market operations contributed substantially to the profit which increased to Rs 453.6 million or by 132.2 percent from Rs 193.7 million in the corresponding period of the last year.

The Board also approved a total financing of Rs 597.5 million to 11 (eleven) companies in manufacturing, and financial sectors.

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.

Since inception Saudi Pak has provided financing facilities of Rs. 28,189.2 million, which includes direct equity investment of Rs. 2,445.9 million, and term financing of Rs. 23,017.1 million.

In addition the underwriting of public issues of shares and guarantees has also been provided for a total amount of Rs. 2,726.2 million.

Saudi Pak maintained long term entity of AA+(Double A plus) and short term entity rating A1+ (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 is playing an important role in promoting brotherly relations between the people of Pakistan and Saudi Arabia.

It is committed to accelerate industrial development in Pakistan by providing loans and investment facilities to industrial projects sponsored by private sector.

The company’s financing is spread over all the key economic sectors including chemicals, engineering, textile, cement, petroleum and communications etc.

The projects financed by Saudi Pak are located throughout the country.

The paid up capital of the company is Rs 2 billion held in equal proportion by the Kingdom of Saudi Arabia and the Government of Pakistan.

The Board its expressed satisfaction over the role performed by Saudi Pak in promoting growth of industrial sector in Pakistan.●