Federal Minister for Finance Ishaq Dar has directed the Saudi-Pak Industrial and Agricultural Investment Co Ltd chief executive to devise a pragmatic roadmap for its future investment ventures which could be implemented after due consideration by the company’s members from both Pakistan and Saudi Arabia.
The minister on Saturday chaired a review session receiving detailed briefed by Chief Executive Kamaluddin on current economic profile of the company.
The chief executive giving an overview of the company’s investment said, established in 1981, it had undertaken project financing to the tune of Rs 46 billion in the fields of textiles, chemical, energy, cement, telecom, construction and other important sectors.
During the period under review (2012-2014), the company achieved a complete turnaround in its operating results. From an insolvent position in 2011 with mounting financial problems, it had risen to become a top performer in 2014.
In 2012, the company’s management was changed which led to positive results. The company’s profit before tax of Rs 1,402 million in 2014 was the highest ever operating profit achieved by the company.
Turnaround in the company’s operating performance and substantial improvement in financial condition had been recognised by the credit rating agency JCR-VIS through an upgrade of company’s long-term entity rating from AA to AA+, CE Kamaluddin informed the minister.
Responding to minister’s query about key indicators during the period 2012-14, Kamal said that the non-yielding assets had significantly reduced by 27.90% to Rs 5441.95 million from 7548.04 million (in 2011) due to aggressive recoveries.
Profit before tax increased to Rs 1402.42 million as of December 2014 compared to a loss of Rs 1,411.75 million in 2011.Total assets in the period increased by Rs 7.80 billion. Similarly, shareholders equity, the CE said increased by Rs 2.49 billion.
The minister appreciated the turnaround achieved by the Saudi-Pak Investment Company emphasizing that it should adopt a futuristic approach and chalk out a comprehensive plan for investment in various sectors. The minister said he would appreciate if this plan was presented to him as soon as possible.
He said the company should follow in letter and spirit its mission to strengthen economic cooperation between the brotherly people of Saudi Arabia and Pakistan and add value for the stakeholders through capital formation and investment related activities in Pakistan and abroad.
The minister stated that exercise for changes in different rules of the company could be undertaken, taking all members on board.
Saudi-Pak Company, it may be added was established in 1981 and has a 6-member Board of Directors, three taken from each country with chairman chosen from Saudi Arabia and Vice Chairman selected from Pakistan.
