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PNSC plan.


Utilisation of PNSC ships has to be increased to at least 60 per cent. The corporation's containers will be increased by about 5 container ships, two bulk cargos and two tankers. From the present fleet of 22 vessels, only 12 are in operationable conditions while the rest are unserviceable. The new PNSC chief Rear Admiral S.H. Khalid said he has taken over recently and felt that revolutionary steps have to be initiated now for making it a financially viable one. Talking about losses, he said about Rs. 4,000 million losses were recorded till June 30, 1990 and added only 10 to 15 per cent were on account of |mismanagement' while the bulk had been due to rupee-yen parity, which hardly the outsiders realise. He said the corporation has to explore new routes and added the PNSC is seriously considering to open the route to Africa as other shipping lines were making big profits on the route.

Pakistan National Shipping Corporation (PNSC), has been given consent to issue shares of the value of Rs. 770 million to the Federal Government, so as to convert its loans and liabilities of an equal amount into equity. The go-ahead came from the Corporate Law Authority (CLA), under the Capital Issues (Continuance of Control) Act 1947.

The move marks the second major step aimed at rescuing the national flag carrier, which has been struggling to keep afloat in a sea of financial crisis. Last year, the Government had offered a financial package writing off the Corporation's liabilities of Rs. 3,997 million. This enabled the Corporation to wipe out its accumulated losses, which until the end of 1989, had peaked to Rs. 3,992 million. At this level, the deficit had covered the Corporation's assets four times over and were eight times its paid-up capital.
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Title Annotation:Company Affairs; Pakistan National Shipping Corporation
Publication:Economic Review
Article Type:column
Date:Jan 1, 1991
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