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Equities resist decline.

The downswing in the stock market was arrested in middle of March and the General Index of share prices started moving upward from 658.30 on March 18 to 693.34 on April 15. The aggregate market capitalisation showed a rise of Rs. 26.960 billion up from Rs. 154.901 billion to Rs. 181.861 billion during the same period.
 (Rs. in billion)
 General Aggregate
 Index Market
 No. Capitalisation
26.02.92 672.06 154.901
04.03.92 680.31 159.840
11.03.92 662.72 155.978
18.03.92 658.30 167.977
25.03.92 673.09 171.620
31.03.92 689.98 178.651
08.04.92 692.95 181.298
15.04.92 693.34 181.861

In its budgetary proposals the Karachi Stock Exchange has asked the Federal Government to extend the time limit of exemption of income tax on Bonus shares by five years. The exemption on these shares is allowed at present but will expire in June next. The KSE wants that it should continue for the next five years, otherwise the market will have a set-back in the investment climate which had picked up in the recent past. The KSE has also sent a number of proposals for the next national budget which include deduction of Zakat on dividend income, wealth tax on shares etc.

It has been pointed out that presently income tax on dividend income is deducted on the gross dividend amount which also includes the quantum of Zakat. In other words the withholding tax of 10 per cent is also deducted on the Zakat amount which is neither fair nor in conformity with the spirit of law. It is suggested that the 10 per cent tax should be deducted on the net dividend income after deduction of Zakat

The levy of half per cent turnover tax on companies is not a tax on the income of such companies and is therefore irrational, illogical and unjust. This tax is also not covered within the spirit of Income tax Law. Therefore,the government has been asked to withdraw the turn-over tax especially in relation to the listed companies which would help in the increased profitability and ultimately distribution amongst the shareholders.

At present wealth tax is levied on shares of listed companies,however shares on which Zakat is deducted from the dividend are exempt from wealth tax. As such wealth tax is payable only on those shares where no cash distribution is made. This has generally affected the liquidity of the investor as on one hand there is no dividend income and on the other hand there is the liability of wealth tax. Therefore, the government has been asked to exempt shares of listed companies from the levy of wealth tax.

Presently the tax on dividends in case of non-resident Pakistanis is 30 per cent. This is totally illogical and unjustified as dividend is treated as separate block of income, and taxed at 10 per cent in case of resident Pakistanis. The government should treat non-resident and resident Pakistanis at par in respect of tax on dividend income by reducing the non-resident withholding tax to 10 per cent. This step will further encourage the inflow of foreign exchange in the form of equity investments in the country's industrial sector.

The business circles welcomed the 25 per cent duty relief given on raw material imports by Gadoon units. The newly announced concession, combined with 50 per cent reduced power tariffs income tax holidays duty free import of machinery and plants availability of finance at a concessionary rate of 3 per cent etc. would still provide an edge to the industries located in Gadoon as compared to the industries located in other parts of the country particularly Karachi.


During the month of March 12 companies were floated. Of these 8 belonged to textile sector. The public response was not so much hectic as was the scenario in the recent past. Nevertheless, issues like Kohinoor Looms, Al-Towfeek, Investment Sunshine Cloth attracted quite heavy subscription. Two issues including Frontier Ceramics and Amazal Textile were under-subscribed.


Arrangements have so far been finalised for selling off 40 units. A list of these units is given in this report. Bids have been called for another 40 units some of which will go on the stock market. Eventually 10 or 20 may not get sold because they have been closed down.


Atlas Bot lnvestment Bank Limited: The company was incorporated as a public limited company in May 1990 at Lahore with the object to form an Investment Bank with the equity participation of the Bank of Tokyo Limited and Asian Development Bank along with Atlas Group of companies. The Bank of Tokyo also agreed to provide technical assistance to the company. Against the Authorised Capital of Rs. 200 million divided into shares of Rs. 10 each the Paid-up Capital stood at Rs. 100 million. The company came on the list of Karachi Stock Exchange in February 1991.

Islamic Investment Bank: This bank has been sponsored by the UAE'S House of Al-Gurair along with the Pakistan private sector. Against the Authorised Capital of Rs. 200 million divided into shares of Rs. 10 each the Paid-up Capital stood at Rs. 100 million. The company came on the list of Karachi Stock Exchange in November 1990.

Altowfeeq Investment Bank Limited: Located at Lahore, the company incorporated as a public limited company on May 30, 1990 at Islamabad. The name of the bank was also changed from Al-Baraka Investment Bank Limited to its current name i.e. Altowfeeq Investment Bank Limited on November 28,1991. The Bank has been sponsored by Al-Baraka Investment and Development of Companies, Saudi Arabia (an Al-Baraka Group Company) along with Islamic Development Bank and Pakistani sponsors. Al-Baraka Investment and Development Company has made the major equity participation and represents the interest of Al-Baraka Group of Companies. In the Banking sector, Al-Baraka Group have a track record of successful banking and investment operations based on Islamic principles strictly in accordance with Sharia.

First International Investment Bank Limited: The company was incorporated as a public limited company on January 20, 1990 at Lahore. The company was sponsored by Packages Group (comprised of Packaged Limited, International General Insurance Co. of Pakistan Ltd. and Syed Babar Ali) and American Express Bank Ltd. Against the Authorised Capital of Rs. 200 million divided into shares of Rs. 10 each the Paid-up Capital stood at Rs. 100 million. The company came on the list of Karachi Stock Exchange in January 1990.

Altaf Saleem honoured at

ISSCT Congress

International Society of Sugar Cane Technologists organized their 21st Congress in Bangkok, Thailand recently. Over 1000 sugar experts from all over the world participated. Technical papers were read by leading sugar technologists on latest technological advances. Sugar experts from Pakistan participated strong contingent of 22 technologists at the ISSCT Congress which is held in different countries after every three years.

Pakistan was honoured when Mr. Altaf M. Saleem, President, Pakistan Sugar Industry Research Foundation and Vice Chairman of Pakistan Sugar Mills Association was elected to the Executive Committee of International Society of Sugar Cane Technologists for 6 years term. He became the first Pakistani to be elected to World body of Sugar experts in 68 years of existence of ISSCT.

Tariq Saigol

New APTMA Chief

Mr Tariq Sayeed Saigol (43) Chairman of Kohinoor Textile Mills Ltd. was elected Chairman of the All Pakistan Textile Mills Association at its annual elections. Haji Ahmed Habib, Arif Zahur and Javed Saifullah Khan were elected vice chairmen of the association in addition to a 20-member managing committee. He did his graduation from Punjab University in 1969. In 1968 he became Director and General Manager of United Chemicals and Insecticides Pakistan. From 1970 to 1976 he served Kohinoor Rayon. Kohinoor Engineering, Kohinoor Oil Mills, Kohinoor Industries Ltd., and Saigol Brothers. in 1976 he became the Managing Director of Kohinoor Textile Mills Ltd., Rawalpindi. Later on he became Chairman, Kohinoor Textile Mills Ltd., Rawalpindi and Kohinoor Weaving Mills Ltd., Lahore. He also halds the post of Managing Director of Zimpex Pakistan (Pvt) Ltd., Scan Communication (Pvt.) Ltd. Zimpex (Agro) Ltd. Chief Executive of Rechna Textile Mills Ltd. and also Director of some of the newly listed companies on Karachi Stock Exchange. He was also the Vice Chairman of APTMA, Chairman of APTMA, Punjab Zone, Lahore. Member of Executive Committee, Lahore Chamber of Commerce and Industry. He has great interest in Golf and Flying.


Afzal Siddiqui

Afzal Siddiqui, editor of Urdu daily Amn died on April 16,1992 of heart failure. He was 61. He was laid to rest at the Azizabad graveyard. He has left behind his wife and three sons,the youngest to whom is studying in the US. Mr. Siddiqui was the founder-editor of Amn which he launched in 1972 after he left Jang following a strike by the newspaper's journalists.

Mr. Siddiqui was born in Delhi in 1931 and he had his education there. His family migrated to Pakistan in 1947, and he joined Radio Pakistan, where he worked as script writer and broadcaster. He was also a major character in the radio serial "Hamid Mian Key Haan". He started his journalistic career with Imroze, where he worked as Sub-Editor. Later he joined Anjam and then Jang.. He Editor of Jang in 1966 add left it in 1971 to start Amn in 1972 with the help of colleagues from Jang.

He held a number of positions in the APNS and CPNE. His special subjects of interest were social sciences and national and international affairs. Amn used to publish daily a quatrain by him. Mr. Siddiqui was jailed in the early seventies for attacking the government's policies. His death has been widely mourned by the official, professional, political and social circles in the city.

Seminar on

Central Asian Republics

Central Asian Republics have become of point of interest for the world at large. Recently several businessman, government dignatories and politicians from Pakistan visited these republics to forge common links between Pakistan and these countries. Mr. Javed Jabbar during his tour collected useful data relating to economies of these states. In an exposition at SID Seminar Mr. Javed Jabbar explained that Central Asian Republics were by no means underdeveloped. They have a very high literacy rate and fairly advanced industrial and technological base. However, Mr. Javed Jabbar pointed out that Central Asian Republics and Kazakistan (CARK) area was the poor part of USSR. Their per capita income ranged between $750 to $1300, with 50 percent population is engaged in agriculture. Mr. Javed Jabbar explained that there was a kind of invisible emergency in the region. These republics have not seen independence of centuries. Pakistan will have to establish communication links and remove language barrier.

Javed Jabbar pointed out that there was absence of population policies in the five Central Asian States of the former Soviet Union namely Kazakistan, Turkmenstan, Uzbekistan, Tajikistan, and Kirgstan. He said people in these republics were pre-occupied by economic crisis and problems of survival. He pointed out that republics suffered a lot because of excessive use of pesticides and fertilizers.

Pakistan could help the Central Asian states by providing them management expertise. He advised Pakistan should beam television programmes to these states at a time when some of them were even looking forward to watch the Israeli television. The Muslims of Central Asian States did want to discover the Islamic identity but they didn't want to bring back the period of Khanates as they had a pragmatic modern of forward looking concept of Islam, he observed.

Pakistan's First

Computer Gallery

IBM have recently started a computers gallery in Karachi. It was inaugurated by Mr. Illahi Buksh Soomro, Federal Minister for Science and Technology, Speaking on the occasion, Mr. Soomro lauded IBM's efforts to bring the latest computer technology to Pakistan. The Gallery houses a collection of IBM hardware, software and applications depicting the evolution of computers. On the ground floor the Gallery displays include yesterday's technology, the first floor displays the technology of today and tomorrow. Visitors are taken on a tour of the Gallery, and are provided explanations about the exhibits, which show the amazing technological advances of the 20th century. IBM's System/360, which was IBM's most significant announcement ever, it another important exhibit on the ground floor. Demos include now computers designed for blind people. How a computer can be used by clinical experts in speech therapy for them to help people with speech disability.

Blind people may appreciate the IBM Screen Reader, an access system using a speech synthesiser. The screen reading software allows the user to navigate over the screen and hear what others can see.

The first floor is also equipped with a mini-cinema to see videos and films on computer related subjects.

The result of the financial year ended September 30, 1991 has shown increase in sales including commission and allowances from RS. 1113 million in 1989-90 to Rs. 1733 million in 1990-91. The net sales was 56% higher compared to previous year. The growth rate was relatively high. Main contribution came from the sale of products like switchboards, power and distribution transformers, rectifiers for telephone exchanges, installation and service, etc. Capital investment amounted to Rs. 81 million which was 12% higher than previous year. The investment was made to modernize further the manufacturing facilities of the factory by balancing, modernization and replacement of existing plants, machinery and equipment. In addition, a substantial number of personal computers were acquired in sales. The net profit after taxation was Rs. 25.83 million compared to 13.4 million 1989-90.

ANZ Grindlays and Pak Telecom has Signed a Contract

Pakistan Telecommunication Corporation has signed a Syndicate of Rs. 2.478 billion with ANZ Grindlays and Syndicate Banks for Private Sector Projects. Mr. J.S.P. Singha of ANZ Grindlays (as shown below) is signing the agreement.

Taejon International

Exposition |93

Korea which stands in the corssroad of advanced and industrializing nations, is. hosting the TAEJON INTERNATIONAL EXPOSITON '93 (August 7 - November 7) with the theme "The Challenge of a New Road to Development". Until recently, expositon, were considered to be the sole possession of advanced nations and Korea is proud to be setting a strong precedent as an industrializing country which has earned a right to host an international exposition.

Just as the Seoul Olympic Games served to provide a forum for friendship between East and West, TAEJON EXPO '93 will offer a common ground for meeting of advanced and industrializing nations. Taejon, which is 160 km Southeast of Seoul and spread over an area of around 25 hectares, is the second largest city of Korea, geographically, having a population of over one million.

The objectives of TAEJON EXPO '93 are to seek harmony between the high technologies of developed countries and the traditinal cultures of developed countries by promoting understanding and exchange between the North and the South. Promote development in science and technology, the main engine for economic development, by providing today's youth with a vision towards the 21st century.

TAEJON EXPO '93 has its sight on introducing the industrial technllogies and traditional culures of nations around the world for the effective promotion of mutual understanding and exchanges with the participation of 60 countries and 20 international organizations and research institutes.

Lack of Birthspacing is a

Major Factor in

High Number of Infant Deaths

Each year, an estimated 10 million babies in developing countries die before their first birthday. As many as 2,000,000 of these infant deaths could be prevented through birthspacing.

In addition, about half a million women die every year from complications of pregnancy and childbirth. Although most women welcome motherhood, there are many risks, associated with pregnancies that are "too early, too late, too many or too frequent." The report indicates that "family planning alone could prevent between 25 and 40 per cent of maternal deaths." Much of this new and authoritative information is based on findings from the Demographic and Health Surveys Programme which is conducting surveys in about 40 developing countries. This new knowledge reinforces what many experts have espoused for years - the integral role of family planning programmes in improving both mothers' and children's chances for survival.

Birthspacing gives parents a greater opportunity to ensure the health and well-being of their children. Closely spaced pregnancies are more likely to result in low-birth-weight infants who are more vulnerable to illness and death. The next oldest sibling, in turn, is also more likely to die. These young children can be weaned too soon, thus leading to malnutrition and increased risk of death from diarrhea and respiratory infections.

One of the most dramatic statistics to emerge from survey findings is that, on average, babies born less than two years after their next oldest brother or sister are almost twice as likely to die as those born after at least a two-year interval. At the same time, the older child is about one-and-a-half times more likely to die. Because so many births are closely spaced in developing countries, birthspacing alone could prevent one in every five infant deaths.

Family planning also.saves women's lives by reducing the risk of maternal mortality. That risk is very high in developing countries, ranging from one death in every 156 pregnancies in Africa to one in every 238 for Asia and one in every 370 for Latin America. in developed countries, only one mother in every 3300 dies from pregnancy and childbirth. in addition, at least 19 per cent of maternal deaths in developing countries are the result of abortion complications.

The high rate of maternal mortality is an indicator of the poor health, education and social status of women, as the large number of pregnancies. According to Professor O. Ransome-Kuti, Nigeria's Minister of Health, "The demand on women to marry. young and produce children to exhaustion, to grow, harvest and prepare the food for consumption, to bear sole responsibility for the household...may come to a head during an episode of pregnancy and childbirth and contribute significantly to her death.'

New global efforts, such as the "Safe Motherhood Initiative," are working to alleviate this unacceptable situation. Childbearing is safer for women who "(1) are between the ages of 18 and 35; (2) have given birth fewer than five times; (3) have not had a child within the previous two years; and (4) do not have existing health problems that would be aggravated by pregnancy." Family planning is an inexpensive way of helping women avoid unwanted pregnancies, dangerous illegal abortions, and childbearing under conditions that will threaten their infants' and their own health.
 New Floatations
 Date of Amount Public
Name Subscription Offered Subscription
Sunrays Textile 03.03.92 22.00 23.00
Al-Azher Textile 02.03.92 42.75 21.00
Kohinoor Looms 04.03.92 35.50 251.40
Frontier Ceramics 05.03.92 38.70 27.80
Rawl Resins Ltd. 09.03.92 22.90 -
Kashmir Polytex 10.03.92 35.50 53.20
Ahmed Oriented 11.03.92 30.90 38.86
Amazai Textile 12.03.92 16.80 3.42
Al-Towfeek Investment 15.03.92 43.50 540.85
Awan Textile 17.03.92 34.60 74.00
Dares Salam 19.03.92 32.00 40.19
Sunshine Cloth 24.03.92 40.00 125.30

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Title Annotation:Pakistan stockmarket
Author:Haidari, Iqbal
Publication:Economic Review
Date:Apr 1, 1992
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