Magazine article Economic Review

Saudi-Pak: A Growing Financial Institution

Magazine article Economic Review

Saudi-Pak: A Growing Financial Institution

Article excerpt

Saudi-Pak Industrial and Agricultural Investment Company (Pvt.) Limited (Saudi-Pak) is a symbol of fraternal bonds which tie the people of Saudi Arabia and Pakistan. It reflects the depth of economic cooperation between the two countries. Saudi-Pak performs as a catalyst in promoting efficient flow of institutional finance in the industrial sector in Pakistan by offering a broad range of financing facilities to the corporate sector of the country.

The basic objective of Saudi-Pak is to accelerate industrial development in Pakistan. It provides term financing facilities in both local and foreign currency for the medium and large scale projects in the private sector. Its clientele consists of entrepreneurs/companies enjoying high credit ratings. In addition to term-financing, Saudi-Pak provides a wide spectrum of merchant banking services including direct equity investment, underwriting of public issues of shares and issuance of guarantees. Saudi-Pak is also engaged in the business of lease financing. The local currency financing which covers bulk of the operations, are based on Islamic modes of financing.

Saudi-Pak, a joint venture of Kingdom of Saudi Arabia and Islamic Republic of Pakistan has a Paid-up capital of Rs. 1.495 billion which is contributed equally by the governments of two countries. As on December 31, 1993, the equity base of the company amounted to Rs. 2.5 billion, which is on e of the largest amongst the banks and financial institutions in the country. A dynamic and forward-looking institution, Saudi-Pak achieved record performance in all areas of its operations during the year 1993. As a result of accelerated business activity, net profit of the company increased by 83.01 percent from Rs. 174.69 million in 1992 to Rs. 320.07 million in 1993. The company is supported by a solid asset base, which increased from Rs. 3.012 billion on December 31, 1992 to Rs. …

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