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APPENDIX

215

Appendix 1.1: List of Scheduled Banks Operating in Pakistan As on 30th June 2000 As on 31st December 2002 Public sector commercial banks Public sector commercial banks 1 First Women Bank Ltd. 1 First Women Bank Ltd. 2 Habib Bank Ltd. 2 Habib Bank Ltd. 3 National Bank of Pakistan 3 National Bank of Pakistan 4 United Bank Ltd. 4 The Bank of Khyber 5 The Bank of Khyber 5 The Bank of Punjab 6 The Bank of Punjab Domestic private banks Domestic private banks 1 Muslim Commercial Bank Ltd 1 Muslim Commercial Bank Ltd 2 Allied Bank of Pakistan Ltd. 2 Allied Bank of Pakistan Ltd. 3 Askari Commercial Bank Ltd. 3 United Bank Ltd. 4 Bank Al-Falah Ltd. 4 Askari Commercial Bank Ltd. 5 Bank Al-Habib Ltd. 5 Bank Al-Falah Ltd. 6 Bolan Bank Ltd. 6 Bank Al-Habib Ltd. 7 Faysal Bank Ltd. 7 Bolan Bank Ltd. 8 Gulf Commercial Bank Ltd. 8 Faysal Bank Ltd. 9 Metropolitan Bank Ltd. 9 Metropolitan Bank Ltd. 10 Platinum Commercial Bank Ltd. 10 KASB Bank Ltd. 11 Prime Commercial Bank Ltd. 11 Prime Commercial Bank Ltd. 12 Prudential Commercial Bank Ltd. 12 Saudi Pak Commercial Bank Ltd. 13 Soneri Bank Ltd. 13 Soneri Bank Ltd. 14 Union Bank Ltd. 14 Union Bank Ltd. 15 Meezan Bank Ltd 16 PICIC Commercial Bank Ltd Foreign Banks Foreign Banks 1 ABN AMRO Bank N.V. 1 ABN AMRO Bank N.V. 2 Al- Baraka Islamic Bank B.S.C. (EC) 2 Al- Baraka Islamic Bank B.S.C. (EC) 3 American Express Bank Ltd. 3 American Express Bank Ltd. 4 Bank of Ceylon 4 Bank of Ceylon 5 Citibank N.A. 5 Citibank N.A. 6 Credit Agricole Indosuez 6 Credit Agricole Indosuez 7 Deutsche Bank AG 7 Deutsche Bank AG 8 Doha Bank 8 Doha Bank 9 Emirates Bank International PJSC 9 Habib Bank AG Zurich 10 Habib Bank AG Zurich 10 International Finance Investment and

Commerce Bank Ltd. 11 International Finance Investment and Commerce 11 Mashreq Bank psc 12 Mashreq Bank psc 12 Oman International Bank S.A.O.G. 13 Oman International Bank S.A.O.G. 13 Rupali Bank Ltd. 14 Rupali Bank Ltd. 14 Standard Chartered Bank 15 Societe Generale, The French and International Bank 15 The Bank of Tokyo-Mitsubishi Ltd. 16 Standard Chartered Bank 16 The Hong Kong and Shanghai Banking

Corporation Ltd. 17 Standard Chartered Grindlays Bank Ltd. 18 The Bank of Tokyo-Mitsubishi Ltd. 19 The Hong Kong and Shanghai Banking Corporation Specialized banks Specialized banks 1 Agricultural Development Bank of Pakistan 1 Zari Taraqiati Bank Ltd. (old ADBP) 2 Punjab Provincial Cooperative Bank 2 Punjab Provincial Cooperative Bank 3 Federal Bank for Cooperatives 3 Industrial Development Bank of Pakistan 4 Industrial Development Bank of Pakistan Micro Finance Banks 1 Khushhali Bank Micro Finance Banks 2 The First Micro Finance Bank Ltd

216

Appendices 1.1Continued List of NBFIs Operating in Pakistan As on 30th June 2000 As on 31st December 2002

Development Finance Institutions Development Finance Institutions

1 National Development Finance Corporation 1 Pakistan Kuwait Investment Company (Pvt) Ltd.

2 Pakistan Industrial Credit & Investment Corporation Ltd. 2 Pak-Libya Holding Co. (Pvt) Ltd.

3 Pak-Kuwait Investment Company (Pvt) Ltd. 3 Pakistan Industrial Credit and Investment Corporation Ltd.

4 Pak-Libya Holding Co. (Pvt) Ltd. 4 Saudi Pak Industrial & Agricultural Inv. Co. (Pvt) Ltd.

5 Bankers Equity Ltd. 5 Pak-Oman Investment Company Limited

6 Regional Development Finance Corporation 6 Investment Corporation of Pakistan

7 Saudi Pak Industrial & Agricultural Inv. Co. (Pvt) Ltd. 7 SME Bank

8 Small Business Finance Corporation (SBFC)

9 Investment Corporation of Pakistan

Investment Banks Investment Banks

1 Al - Meezan Investment Bank Ltd. 1 Asset Investment Bank Ltd.

2 Al-Faysal Investment Bank Ltd. 2 Atlas Investment Bank Ltd.

3 AlTowfeek Investment Bank Ltd. 3 Crescent Investment Bank Ltd.

4 Asset Investment Bank Ltd. 4 Escorts Investment Bank Ltd.

5 Atlas Investment Bank Ltd. 5 Fidelity Investment Bank Ltd.

6 Crescent Investment Bank Ltd. 6 First international Investment Bank Ltd.

7 Escorts Investment Bank Ltd. 7 First Standard Investment Bank Limited

8 Fidelity Investment Bank Ltd. 8 Franklin Investment Bank Ltd.

9 First international Investment Bank Ltd. 9 Islamic Investment Bank Ltd.

10 Franklin Investment Bank Ltd. 10 Jahangir Siddiqui Investment bank Ltd.

11 Islamic Investment Bank Ltd. 11 Orix Investment Bank Ltd.

12 Jahangir Siddiqui Investment bank Ltd. 12 Prudential Investment Bank Ltd.

13 Orix Investment Bank Ltd. 13 Security Investment Bank Ltd.

14 Prudential Investment Bank Ltd. 14 Trust Investment Bank Ltd..

15 Security Investment Bank Ltd.

16 Trust Investment Bank Ltd..

Leasing Companies Leasing Companies 1 Asian Leasing Corporation Ltd. 1 Askari Leasing Company Ltd.

2 Askari Leasing Company Ltd. 2 Capital Assets Leasing Corporation Ltd.

3 Atlas Lease Ltd. 3 Crescent Leasing Company Ltd.

4 Capital Assets Leasing Corporation Ltd. 4 Dawood Leasing Company Ltd.

5 Crescent Leasing Company Ltd. 5 First Leasing Corporation

6 Dadabhoy Leasing Company Ltd. 6 Grays Leasing Ltd.

7 Dawood Leasing Company Ltd. 7 Ibrahim Leasing Ltd.

8 English Leasing Ltd. 8 Inter Asia Leasing Company Ltd.

9 First Leasing Corporation 9 International Multi Leasing Corporation Ltd.

10 Ghandhara Leasing Company Ltd. 10 Lease Pak Ltd.

11 Grays Leasing Ltd. 11 National Development Leasing Corporation Ltd.

12 Ibrahim Leasing Ltd. 12 Natover Lease & Refinance Ltd.

13 Inter Asia Leasing Company Ltd. 13 Network Leasing Corporation Ltd.

14 International Multi Leasing Corporation Ltd. 14 Orix Leasing Pakistan Ltd.

15 Lease Pak Ltd. 15 Pacific Leasing Corporation Ltd.

16 Mercantile Leasing Company Ltd. 16 Pak-Apex Leasing Company Ltd.

17 National Assets Leasing Corporation Ltd. 17 Pak-Gulf Leasing Ltd.

217

18 National Development Leasing Corporation Ltd. 18 Pakistan Industrial & Commercial Leasing Ltd.

Appendix 1.1 Continued..

19 Natover Lease & Refinance Ltd. 19 Paramount Leasing Ltd.

20 Network Leasing Corporation Ltd. 20 Saudi Pak Leasing Company Ltd

21 Orix Leasing Pakistan Ltd. 21 Security Leasing Company Ltd.

22 Pacific Leasing Corporation Ltd. 22 Sigma Leasing Corporation Ltd.

23 Pak-Apex Leasing Company Ltd. 23 Trust Leasing Corporation Ltd.

24 Pak-Gulf Leasing Ltd. 24 Union Leasing Ltd.

25 Pakistan Industrial & Commercial Leasing Ltd. 25 Universal Leasing Corporation Ltd.

26 Pakistan Industrial Leasing Corporation Ltd 27 Paramount Leasing Ltd. 28 Saudi Pak Leasing Company Ltd. 29 Security Leasing Company Ltd. 30 Sigma Leasing Corporation Ltd. 31 Trust Leasing Corporation Ltd. 32 Union Leasing Ltd. 33 Universal Leasing Corporation Ltd.

Modarabas Modarabas 1 Al-Noor Modaraba 1 Al-Noor Modaraba 2 Allied bank Modaraba 1st 2 Allied bank Modaraba 1st 3 Al-Zamin Modaraba 3 Al-Zamin Modaraba 4 B.F. Modaraba 4 B.F. Modaraba 5 B.R.R. International Modaraba 5 B.R.R. International Modaraba 6 Confidence Modaraba 1st 6 Constellation Modaraba 1st 7 Constellation Modaraba 1st 7 Crescent Modaraba 1st 8 Crescent Modaraba 1st 8 Custodian Modaraba 1st 9 Custodian Modaraba 1st 9 Elite Capital Modaraba 1st 10 Dadabhoy Modaraba 1st 10 Equity Modaraba 1srt 11 Elite Capital Modaraba 1st 11 Fayzan Manufacturing Modaraba 12 Equity Modaraba 1srt 12 Fidelity Leasing Modaraba 1st 13 Fidelity Leasing Modaraba 1st 13 Financial Link Modaraba 14 Financial Link Modaraba 14 General leasing Modaraba 1st 15 General leasing Modaraba 1st 15 Grindlays Modaraba 1st 16 Grindlays Modaraba 1st 16 Guardian Leasing Modaraba 17 Guardian Leasing Modaraba 17 Habib Bank Modaraba 1st 18 Habib Bank Modaraba 1st 18 Habib Modaraba 1st 19 Habib Modaraba 1st 19 Hajveri Modaraba 1st 20 Hajveri Modaraba 1st 20 IBL Modaraba 1st 21 IBL Modaraba 1st 21 Imrooz Modaraba 1st 22 Ibrahim Modaraba 1st 22 Industrial Capital Modaraba 1st 23 Imrooz Modaraba 1st 23 Interfund Modaraba 1st 24 Industrial Capital Modaraba 1st 24 Islamic Modaraba 1st 25 Interfund Modaraba 1st 25 LTV Capital Modaraba 26 Islamic Modaraba 1st 26 Mehran Modaraba 1st 27 LTV Capital Modaraba 27 Modaraba Al Tijarah 28 Mehran Modaraba 1st 28 Modaraba Al-Mali 29 Modaraba Al Tijarah 29 National Modaraba 1st 30 Modaraba Al-Mali 30 Pak Modaraba 1st 31 National Modaraba 1st 31 Paramount Modaraba 1st 32 Pak Modaraba 1st 32 Professional Modaraba 1st 33 Paramount Modaraba 1st 33 Prudential Modaraba 1st 34 Professional Modaraba 1st 34 Punjab Modaraba 1st 35 Providence Modaraba 1st 35 Tri-Star Modaraba 1st 36 Prudential Modaraba 1st 36 Tri-Star Modaraba 2nd 37 Prudential Modaraba 2nd 37 Trust Modaraba 38 Prudential Modaraba 3rd 38 UDL Modaraba 1st 39 Punjab Modaraba 1st 39 Unicap Modaraba 40 Schon Modaraba 40 Unity Modaraba 41 Tri-Star Modaraba 1st 42 Tri-Star Modaraba 2nd 43 Trust Modaraba 44 UDL Modaraba 1st 45 Unicap Modaraba 46 Unity Modaraba

Housing Finance Companies Housing Finance Companies 1 Citibank Housing Finance Co. Ltd. 1 Citibank Housing Finance Co. Ltd. 2 House Building Finance Corporation 2 House Building Finance Corporation

218

3 International Housing Finance Ltd. 3 International Housing Finance Ltd. 4 LTV Housing Finance Ltd. 4 LTV Housing Finance Ltd.

1.1 continued Mutual Funds Mutual Funds 1 1st ICP Mutual Fund 1 1st ICP Mutual Fund 2 2nd ICP Mutual Fund 2 2nd ICP Mutual Fund 3 3rd ICP Mutual Fund 3 3rd ICP Mutual Fund 4 4th ICP Mutual Fund 4 4th ICP Mutual Fund 5 5th ICP Mutual Fund 5 5th ICP Mutual Fund 6 6th ICP Mutual Fund 6 6th ICP Mutual Fund 7 7th ICP Mutual Fund 7 7th ICP Mutual Fund 8 8th ICP Mutual Fund 8 8th ICP Mutual Fund 9 9th ICP Mutual Fund 9 9th ICP Mutual Fund 10 10th ICP Mutual Fund 10 10th ICP Mutual Fund 11 11th ICP Mutual Fund 11 11th ICP Mutual Fund 12 12th ICP Mutual Fund 12 12th ICP Mutual Fund 13 13th ICP Mutual Fund 13 13th ICP Mutual Fund 14 14th ICP Mutual Fund 14 14th ICP Mutual Fund 15 15th ICP Mutual Fund 15 15th ICP Mutual Fund 16 16th ICP Mutual Fund 16 16th ICP Mutual Fund 17 17th ICP Mutual Fund 17 17th ICP Mutual Fund 18 18th ICP Mutual Fund 18 18th ICP Mutual Fund 19 19th ICP Mutual Fund 19 19th ICP Mutual Fund 20 20th ICP Mutual Fund 20 20th ICP Mutual Fund 21 21st ICP Mutual Fund 21 21st ICP Mutual Fund 22 22nd ICP Mutual Fund 22 22nd ICP Mutual Fund 23 23rd ICP Mutual Fund 23 23rd ICP Mutual Fund 24 24th ICP Mutual Fund 24 24th ICP Mutual Fund 25 25th ICP Mutual Fund 25 25th ICP Mutual Fund 26 ICP SEMF 26 ICP SEMF 27 Investment Corporation Of Pakistan (Mutual Funds only) 27 Investment Corporation Of Pakistan (Mutual Funds Only) 28 National Investment Trust Ltd. 28 National Investment Trust Ltd. 29 Golden Arrow Selected Stock Fund 29 Golden Arrow Selected Stock Fund 30 Tri-Star Mutual Fund 30 Tri-Star Mutual Fund 31 Growth Mutual Fund 31 Growth Mutual Fund 32 Security Stock Fund 32 Asian Stock Fund 33 Asian Stock Fund 33 Prudential Stock Fund 34 Prudential Stock Fund 34 KASB Premier Fund 35 KASB Premier Fund 35 Safeway Mutual Fund 36 Safeway Mutual Fund 36 First Capital Mutual Fund 37 First Capital Mutual Fund 37 Dominion Stock Fund 38 Confidence Mutual Fund 38 Al-Meezan Mutual Fund 39 Dominion Stock Fund 40 Al-Meezan Mutual Fund

Discount Houses Discount Houses 1 First Credit & Discount Corporation (Pvt) Ltd. 1 First Credit & Discount Corporation (Pvt) Ltd. 2 National Discounting Services Ltd. 2 National Discounting Services Ltd. 3 Prudential Discount & Guarantee House Ltd. 3 Prudential Discount & Guarantee House Ltd. 4 Speedway Fondmetal (Pakistan) Limited 4 Speedway Fondmetal (Pakistan) Limited

Venture Capital Companies Venture Capital Companies 1 Pakistan Emerging Ventures Ltd. 1 Pakistan Emerging Ventures Ltd. 2 Pakistan Venture Capital Ltd. 2 Pakistan Venture Capital Ltd. 3 TMT Venture Limited 4 TRG Pakistan Limited

219

Appendix 1.2 Privatization Proceeds From I Transactions

From 1991 to June 30, 2003 Rs (in million)

Sr. No Unit Name Sale Proceeds

Date of Transfer

Buyer Name

Banking and Finance

Bank 1 Allied Bank Limited (51%) 971.6 Feb-91 EMG 2 Muslim Commercial Bank (75%) 2,420.0 Apr-91 National Group 3 Bankers Equity (26%) 618.7 Jun-96 LTV Group 4 Habib Credit & Exchange (70 %) 1,633.9 Jul-97 Sh. Nahyan bin Mubarik Al-

Nahyan

5 United Bank Ltd. (51%) 12,350.0 Oct-02 Consortium of Bestway & Abu Dhabi Group

6 Bank Alfalah 620.0 Dec-02 Abu Dhabi Group 18,614.2 Capital Market Transaction

7 Muslim Commercial Bank (6.8%) 563.2 Jan-01 MCB Employees-PF & Pension Fund

8 Muslim Commercial Bank (4.4%) 364.0 Nov-01 MCB Employees-PF & Pension Fund

9 NBP (37.3 million shares) 373.0 Feb-02 Listing/Public Offer 10 Muslim Commercial Bank (CDC) 664.0 Oct-02 Stock Exchange 11 Pakistan Oil Fields Limited shares (CDC) 5,055.0 Oct-02 Stock Exchange 12 ICP Lot – A 175.0 Sep-02 ABAMCO 13 ICP Lot – B 303.0 Oct-02 PICIC 14 ICP – SEMF 787.0 Apr-03 PICIC 15 National Bank of Pakistan 10% shares

thru stock exchange 782.0 Nov-02 Stock Exchange

16 Attock Refinery Limited shares (CDC) 614.0 Jan-03 Stock Exchange 17 DG Khan Cement shares (CDC) 41.0 Dec-02 Stock Exchange

Total 9,721.2 Total Banking & Finance: 28,335.4 Energy Sector

18 Mari Gas (20%) 102.4 Apr-94 Mari Gas Company Ltd. 19 Kot Addu Power Company (26%) 6,707.6 Jun-96 National Power 20 Kot Addu Power Company (10%) 2,370.7 Nov-96 National Power 21 Kot Addu (Escrow A/c) 1,033.0 Apr-02 National Power 22 SSGC LPG business 369.0 Aug-00 Caltex Oil Pak.(Pvt) Ltd. 23 SNGPL LPG business 142.0 Oct-01 Shell Gas LPG Pakistan 24 Badin II (Revised) 516.1 25-06-02 BP Pakistan & Occidental

Pakistan

25 Adhi 681.4 04-05-02 Pakistan Oil Field 26 Dhurnal 230.7 04-05-02 Western Acquisition 27 Ratana 32.0 04-05-02 Western Acquisition 28 Badin I 8,599.1 25-06-02 BP Pakistan & Occidental

Pakistan

29 Turkwal 120.3 25-06-02 Attock Oil Company Total 20,904.3

1.2 Continued

220

Telecommunications

30 PTCL (2%) 3,032.5 Aug-94 Through Local Stock Exchange

31 PTCL (10%) 27,525.9 Sep-94 Through DR form Total 30,558.4 Industrial Units Automobile

32 Al-Ghazi Tractors Ltd. 105.6 Nov-91 Al-Futain Industries (Pvt) Ltd. UAE

33 National Motors Ltd. 150.4 Jan-92 Biboo Jee Services 34 Millat Tractors Ltd. 306.0 Jan-92 EMG 35 Baluchistan Wheels Ltd. 276.4 May-92 Abdul Qadir & Saleem I.

Kapoorwala

36 Pak Suzuki Co. Ltd. 172.0 Sep-92 Suzuki Motors Co. Japan 37 Naya Daur Motors Ltd. 22.3 Jan-93 Farid Tawakkal & Saleem I.

Kapoorwala

38 Bolan Castings 69.2 Jun-93 EMG Total 1,101.9 Cement

39 Maple Leaf Cement 485.7 Jan-92 Nishat Mills Ltd. 40 Pak Cement 188.9 Jan-92 Mian Jehingir Ellahi & Ass

41 White Cement 137.5 Jan-92 Mian Jehingir Ellahi & Associates

42 D.G Khan Cement 1,972.8 May-92 Tariq Sehgal & Associates 43 Dandot Cement 636.7 May-92 EMG 44 Garibwal Cement 836.3 Sep-92 Haji Saifullah & Group 45 Zeal Pak Cement 239.9 Oct-92 Sardar M. Ashraf D. Baluch

46 Kohat Cement 527.9 Oct-92 Palace Enterprises 47 Dandot Works - National Cement 110.0 Jan-95 EMG 48 General Refractories Limited 18.9 Feb-96 Shah Rukh Engineering 49 Wah Cement 2,635.5 Feb-96 EMG

Total 7,790.1 Chemical

50 National Fibres Ltd 756.6 Feb-92 Schon Group 51 Kurram Chemicals 33.8 Feb-92 Upjohn Company USA 52 Pak PVC Ltd 63.6 Jun-92 Riaz Shaffi Reysheem 53 Sind Alkalis Ltd 152.3 Oct-92 EMG 54 Antibiotics (Pvt) Ltd 24.0 Oct-92 Tesco (Pvt) Ltd. 55 Swat Elutriation 16.7 Dec-94 Sahib Sultan Enterprises 56 Nowshera PVC Co. Limited 20.7 Feb-95 Al_syed Enterprises 57 Swat Ceramics (Pvt) Limited 38.6 May-95 Empeiral Group 58 Ittehad Chemicals 399.5 Jul-95 Chemi Group 59 Pak Hye Oils 53.6 Jul-95 Tariq Siddique Associates 60 Ravi Engineering Limited 6.5 Jan-96 Petrosin Products Pte 61 Nowshera Chemicals 21.2 Apr-96 Mehboob Ali Manjee 62 National Petrocarbon 20.8 Jul-96 Happy Trading 63 National Petrocarbon (add’l 10% shares) 2.3 Mar-02 Happy Trading

1,610.2

221

1.2 continued

Engineering

64 Karachi Pipe Mills 18.9 Jan-92 Jamal Pipe Industries 65 Pioneer Steel 4.4 Feb-92 M. Usman 66 Metropolitan Steel Mills Limited 66.7 May-92 Sardar M. Ashraf D. Baluch

67 Pakistan Switchgear 8.9 Jun-92 EMG 68 Quality Steel 13.2 Apr-93 Marketing Enterprises 69 Textile Machinery Co 27.9 Oct-95 Mehran Industries 70 Indus Steel Pipe 47.4 Oct-96 Hussien Industries

187.4 Fertilizer

71 Pak China Fertilizers Company Limited 435.4 May-92 Schon Group 72 Pak Saudi Fertilizers Ltd. 7,335.9 May & Sep-02 Fauji Fertilizers 73 Pak Saudi Fertilizers Ltd. (10%) 815.0 Sep-02 Fauji Fertilizers Ltd.

Total 8,586.3 Ghee

74 Fazal Vegetable Ghee 21.2 Sep-91 Mian Mohammad Shah 75 Associated Industries 152.0 Feb-92 Mehmoob Abu-er-Rub 76 Sh Fazal Rehman 64.3 Apr-92 Rose Ghee Mills 77 Kakakhel Industries 55.3 May-92 Mehmoob Abu-er-Rub 78 United Industries 15.5 May-92 A. Akbar Muggo 79 Haripur Vegetable Oil 30.1 Jul-92 Malik Naseer & Assoc. 80 Bara Ghee Mills 27.8 Jul-92 Dawood Khan 81 Hydari Industries - Aug-92 EMG 82 Chiltan Ghee Mills 47.5 Sep-92 Baluchistan Trading Co. 83 Wazir Ali Industries 31.9 Dec-92 Treat Corporation 84 Asaf Industries (Pvt) Limited 23.8 Jan-93 Muzafar Ali Isani 85 Khyber Vegetable 8.0 Jan-93 Haji A. Majid & Co. 86 Suraj Vegetable Ghee Industries 10.2 Jan-93 Trade Lines 87 Crescent Factories Vegetable Ghee Mills 46.0 Jan-93 S. J. Industries 88 Bengal Vegetable 19.1 Mar-93 EMG 89 A & B Oil Industries Limited 28.5 Mar-93 Al-Hashmi Brothers 90 Dargai Vegetable Ghee Industries 26.2 Nov-97 Gul Cooking Oil Industries 91 Punjab Veg. Ghee 18.7 May-99 Canal Associates 92 Burma Oil 20.1 Dec-96 Home Products Intl 93 E&M Oil Mills 94.0 Jul-02 Star Cotton Corp. Ltd. 94 Maqbool Oil Company Ltd. 27.6 Jul-02 Madina Enterprises

767.8 Mineral

95 Makerwal Collieries 6.1 Jul-95 Ghani Group of Industries Rice

96 Sheikhupura 28.0 May-92 Contrast Pvt Ld. 97 Faizabad 21.2 May-92 Packages Ltd. 98 Siranwali 16.2 Jul-92 Enkay Enterprises 1.2

Continued

99 Hafizabad 20.0 Sep-92 Pak Pearl Rice Mills 100 Eminabad 24.1 Nov-92 Pak Arab Food Industries

222

101 Dhaunkel 79.2 Jun-93 Dhonda Pakistan Pvt Ltd. 102 Mabarikpur 14.3 Nov-93 Maktex Pvt) Ltd. 103 Shikarpur 32.5 Mar-96 Afzaal Ahmad

235.5 Roti Plants

104 Gulberg, Lahore 8.7 Jan-92 Packages Ltd. 105 Peshawar 2.6 Jan-92 Saleem Group of Ind 106 Head Office, Lahore 10.2 Jan-92 Hajra Textile Mills 107 Hyderabad 2.6 Jan-92 Utility Stores Corp. 108 Faisalabad 11.5 Jan-92 Azad Ahmad 109 Bahawalpur 1.6 Feb-92 Utility Stores Corp. 110 Multan 2.5 Feb-92 Utility Stores Corp. 111 Quetta 4.8 Feb-92 Utility Stores Corp. 112 Islamabad 3.6 Mar-92 Utility Stores Corp. 113 Taimuria, Karachi 9.2 Jun-92 Spot Light Printers 114 SITE, Karachi 5.1 Sep-92 Specialty Printers 115 Multan Road, Lahore 3.5 Dec-92 Utility Stores Corp. 116 Korangi, Karachi 4.1 Apr-93 Utility Stores Corp. 117 Mughalpura, Lahore - Jun-96 Pakistan Railways 118 Gulshan-e-Iqbal, Karachi 20.2 Mar-98 Ambreen Industries

90.2 Textile

119 Quaidabad Woollen Mills 85.5 Jan-93 Jehingir Awan Associates 120 Cotton Ginning Factory 1.2 Jun-95 Hamid Mirza

86.7 Total (all Industrial Units) 20,462.2 Miscellaneous

121 National Tubewell Const Corpn 18.6 Sep-99 Through Auction 122 Duty Free Shops 12.5 Sep-99 Weitnaur Holding Ltd. 123 Republic Motors (Plot) 6.3 Nov-99 Muhammad Mushtaq 124 Al Haroon Building Karachi 110.0 Sep-02 LG Group

147.4 Newspapers

125 N.P.T Building 185.0 Oct-93 Army Welfare Trust 126 Mashriq – Peshawar 26.6 Jun-95 Syed Tajmir Shah 127 Mashriq – Quetta 6.2 Jan-96 EMG 128 Progressive Papers Ltd. 46.1 May-96 Mian Saifu-ur-Rahman 129 Mashriq – Karachi 6.5 Aug-96 EMG

270.4 Tourism

130 Cecil's Hotel 190.9 Jun-98 Imperial Builders 131 Federal Lodges - 1- 4 39.2 Jan-99 Hussain Global Assoc. 132 Dean's Hotel 364.0 Dec-99 Shahid Gul & Partners

Total 594.1 Total 1,011.9

Total upto 30-6-2003 101,272.0

223

Appendix 1.3

List of Upcoming Transactions

Company Type of Sale Envisaged Telecommunications

Pakistan Telecom Co Ltd (PTCL) 26% strategic sale

Oil and Gas

Pakistan State Oil (PSO)

51% strategic sale Sui Southern Gas Corp Ltd (SSGCL) 5% Public Offer Pakistan Petroleum Ltd (PPL) 51% strategic sale National Refinery Ltd (NRL) 51% strategic sale Banking and Finance

Habib Bank Limited (HBL)

51% strategic sale

National Investment Trust (NIT) Under review Power

Karachi Electric Supply Corp (KESC) 51-74% shares Faisalabad Electric Supply Co (FESCO) 56% shares Genco 1 (Jamshoro) 51% strategic sale

Industry and Real Estate

Pakarab Fertilizer Ltd. 90% sale Pakamerican Fertilizer Ltd. 90% sale Faletti’s Hotel Asset sale Malam Jabba Asset sale National Construction Ltd. (NCL) Sale of shares Koh-e-Noor Oil Mills Asset sale

224

Appendix 3.1 1987 - 1991 MCB Before Privatization

Inputs: Total Assets: X 28.6+28.4+32.5+36.3+45.2 = 171 X = 171/5 = 34.2 Mean

X2 817.96+806.56+1056.25+1317.69+2043.04 = 6041.5

S2 = (6041.5 – 5×34.22 ) /4 = 48.325 V(X) = 48.325/5 = 9.665 Variances

S = 6.95 SD

1997 - 2001

MCB After Privatization

Inputs: Total Assets: X 0.150+ 0.150+ 0.159+ 0.332+ 0.187 = 0.978 X = 0.1956 Mean

X2 0.1502+ 0.1502+ 0.1592+ 0.3322+ 0.1872 = 0.215474

S2 = (0.215474 – 5×0.19562 ) /4 = 0.0060443; V(X) = 0.0060443/5 Variances = 0.00120886

S = 0.077745096 SD

Efficiency = 9.665/0.00120886 = 7995.14 = before/after > 1 => MCB relative performance better after priva than before or efficiency

1987 - 1990 ABL Before Privatization

Inputs: Total Assets: X 14.3+16.2+19.1+23.3 = 72.9 X = 72.9/4 = 18.225 Mean

X2 = 14.32+16.22+19.12+23.32 = 1374.63 S2 = (1374.63 – 4×18.2252 ) /3 = 15.3425 V(X) = 15.3425/4

= 3.84 Variances S = 3.92 SD

1996 - 1999

ABL After Privatization

Inputs: Total Assets: X 0.634+0.724+0.894+0.104 = 2.356 X = 2.356/4 = 0.589 Mean

X2 0.6342+0.7242+0.8942+0.1042 = 1.736184

S2 = (1.736184 – 4×0.5892 ) /3 = 0.1162 V(X) = 0.1162/4 = 0.03 Variances

S = 0.34 SD

Efficiency = 3.84/0.03= 128 = before/after > 1 => ABL relative performance after privatization better than before or efficiency

225

Appendix 3.2 profit and Loss Account of MCB before Privatization (In rupees)

1987 1988 1989 1990 1991

Mark up/return/interest earned 2247813441 2176215890 2269720109 2638307048 3192089572

Mark up/return/interest expense 1452592066 1323036347 1496323415 1709808151 2114270463

Net mark up/interest 795221375 853179543 773396694 928498897 1077819109Fee commission exchange and brokerage income 325688688 355654427 564964067 581449453 659943826

Income from rent 1950212 2812918 4222321 4497900 5087622

Income from sale of investment 11632271 12177438 5238291 5154139 25948582

Dividend income

Other income 16800288 17473251 18895479 34816688 40785029

Total Income 1151292834 1241297577 1366716852 1554417077 1809584168

Expenses Salaries,allowances,and provident fund 637460521 666670339 744930735 987299939 1048004206

Rent ,taxes,insurance,lighting etc. 74645231 88796728 95169453 95133899 137050212

Law charges 5869566 9270198 10401559 7387179 11738725

Postages, telegrams and stamps. 23881320 24940754 30237294 35416944 39964353

Auditors' fee 150000 180000 180000 180000 180000Depreciation on and repairs to the banking company's property 27463718 25535284 25797395 28794140 32755206Stationary printing, advertisment etc. 19664853 18305468 22135940 22007213 42405567

Other expenditures 152246790 168252921 175079578 210947421 266627640

Donations 52300 433500 22900 28400 6936416

Contribution to staff welfare fund 10500000 11900000 13140000 8361000 11197000

Total expenses 951934299 1014285192 1117094854 1395556135 1596859325Profit for the year before taxation. 199358535 227012385 249621998 158860942 212724843

provision for taxation

Current 99200000 106000000 109120593 100000000 146000000

prior year -51662952 -8790426 -27120593 -20378294 nil

balance 151821487 129802811 167621998 38482648 66724843

Balance brought farward 93020 273007 434318 94066 614464

151914507 130075818 168056316 38576714 67339307

Transfer to reserve 143000000 121000000 155000000 25000000 67000000

proposed dividend 8641500 8641500 12962250 12962250 nil

Profit for the year 237007 434318 94066 614464 339307

226

3.2 continued Muslim Commercial bank Limited

Profit and Loss Account for after Privatization

1997 1998 1999 2000 2001

Mark up revenue 16,939,966 17,755,988 15,755,990 14,124,265 17,034,263

Mark up expense 10,267,190 11,099,850 9,420,968 7,238,680 7,544,897

Net Mark up 6,672,776 6,076,138 6,335,022 6,885,585 9,489,366

provision for diminution of investment 589,476 28,500 257,144 46,048 62,064

provision for non performing loans 806,252 144,000 601,799 1,704,944

Bad debts directly written off 153,804 120,130 39,424 483,943 448,999

Total Provision and write off 1,549,532 292,630 296,568 1,131,790 2,216,007

net Mark up after provision 5,122,088 5,808,124 6,038,454 5,753,772 7,272,321

fee commission and brokerage income 944,944 922,044 901,444 909,045 868,637

Dividend Income 31,259 24,290 40,245 158,909 243,994

Income from dealing in foreign currency 888,769 871,341 633,137 609,838 687,854

Other Income 736,188 646,263 701,459 1,085,614 400,140

Total Income 7,723,248 8,517,178 8,314,739 8,272,062 7,723,248

Administration Expenses 5933700 6004561 7038834 7130724 7331623

Other provisions 243744 9750 60570 30000 40000

Other Charges 311016 1310748 4796 36725 147

Profit Before Taxation 1234788 947003 1210539 1321795 2101176

taxation current 957720 650992 852186 1083048 655164

taxation prior years 44457 -1209758 -213126

taxation deffered 296385 674533 -210597 149200 35280

Net profit 238782 399180 568950 734729 1108176

227

Appendix 3.2 (cont) Profit and Loss Account of ABL before privatization

1986 1987 1988 1989 1990

Total Interest Revenue 899898667 1020801001 1097194673 1.297E+09 1655157873

Interest Expense 564044272 630851921 685760943 880659595 1103412084

Net Interest Revenue 335854395 389949080 411433730 416386869 551745789

Other Income 20302837 25019267 39463680 29232428 72855506

Commission & Fees 87502786 123822301 163577339 249592030 315015340

Trading Securities 1127749 2526375 4728213 1706707 732799

Gain (Loss) on Foreign Exchange

Other Income 10315 68780 69790 69240 71678

Total Income 444798082 541385803 619272752 696987274 940421112

Administrative Expense 282662261 340302646 387823052 435498471 594191960

Other Charges 97131978 118024713 148277433 174482092 244054253

Provision against non-performing

Loans

Total Expense 379794239 458327359 536100485 609980563 838246213

Income before tax 65003843 83058444 83172267 87006711 102174899

Taxation 27500000 36900000 33100000 33900000 41000000

Net Income 37503843 46158444 50072267 53106711 61174899

228

Appendix 3.2 Continued P/L Accounts for ABL After privatization (Rs.000)

1996 1997 1998 1999 Total Interest Revenue 4,692,220 5,026,784 6,059,060 7,287,432

Interest Expense 3,802,172 4,639,053 5,289,971 6,953,006

Net Interest Revenue 890,048 387,731 769,089 334,426

Other Income 405,746 361,322 426,229 358,997

Commission & Fees 1,185,396 1,130,242 1,033,310 1,172,024

Trading Securities 491,449 564,453 755,170 971,956

Gain (Loss) on Foreign Exchange - - - -

Other Income 795,933 1,313,718 710,238 1,081,457

Total Income 3,768,572 3,757,466 3,694,036 3,918,860

Administrative Expense 3,019,703 2,960,699 3,396,440 3,772,889

Other Charges - 32,001 128,004 128,004

Provision (write backs) against non-performing 515,000 736,000 - (53,131)

Loans

Total Expense 3,534,703 3,728,700 3,524,444 3,847,762 Income before tax 233,869 28,766 169,592 71,098 Taxation 164,000 15,102 150,000 60,554 Net Income 69,869 13,664 19,592 10,544

229

Appendix 3.2 Continued Balance Sheets MCB Before Privatization (Rs.000) 1987 1988 1989 1990 1991 cash at hand, state bankand national bank 2465981998 2417589203 2596318960 3191937581 5657745448Balance with other banks 445612685 393587553 239004890 839288900 800016063

Money at call and short Notice 1265014411 1375497489 1210555383 273789665 1716640000Total current Assets 4176609094 4186674245 4045879233 4305016146 8174401511

Investments ( at cost less provisions) 9837276759 9551587434 10991438501 10687540848 13047284777

Advances 13110617022 13096086856 15548316766 18987094540 21000380355

Total Intermediate assets 22947893781 22647674290 26539755267 29674635388 34047665132

Other Assets PremisesLess depreciation 55312919 59417220 57450541 80890561 91853293Furniture and Fixture less depreciation 101160251 94206545 88275453 93511494 97991533

Other Assets including Silver 1358472917 1384889117 1767546896 2139815304 2789395113 1514946087 1538512882 1913272890 2314217359 Total Assets 28639448962 28372861417 32498907390 36293868893 45201306582

Liabilities and Equities Bills Payable 533829981 563123045 687304838 744181555 1026787023Borrowings from other banks,Agents &cos. 2493654554 2616457444 2836566755 4049496898 4294052888Other Liabilities 1775054031 1927313471 2128948269 2262969083 3237875029

Deposits and Other Accounts 22591537389 21899433139 25324893462 27690506893 35029152335

Total liabilities

Shareholders Equity 27394075955 27006327099 30977713324 34747154429 43587867275

Issed,subscribed and paid up capital 576100000 576100000 576100000 576100000 576100000Reserve funds and other Reserves 669000000 790000000 945000000 970000000 1037000000Profit brought forward 273007 434318 94066 614464 339307

Total Owner Equity 1245373007 1366534318 1521194066 1546714464 1613439307

Total Owner Equity and Liabilities 28639448962 28372861417 32498907390 36293868893 45201306582

230

Appendix 3.2 continued MCB balance Sheets for after privatization

1997 1998 1999 2000 2001

Assets

Cash 12801142 13559218 17669913 12571424 21259900

Balance with other banks 548,219 788,081 3603458 4,757,413 3,025,689

Money at Call and short Notice 864,470 467,655 9398536

Total Current assets 14,213,831 14,814,954 30,671,907 17,328,837 24,285,589lending to Financial Institutions 10,852,094 15,470,519

Investment -net 58,094,728 57,980,746 45609297 43,110,947 55,432,235

Advances -net 64,365,285 62,920,478 67432574 86,359,139 76,585,999

Total Intermediate term Assets 122,460,013 120,901,224 113,041,871 140,322,180 147,488,753Capital work in Progress 51,677 20,467 50828

Operating Fixed Assets 3,529,980 3,559,751 3479458 3,604,356 3,659,646

Other Assets 9,839,637 10,428,361 11340754 13,203,910 11,400,906

Deffered Tax Assets 255,780 220,500

Total Assets 150,095,138 149,725,757 158584818 332,366,080 187,055,394Liabilities and Equities

Bills Payable 7,989,205 4,611,819 5292910 7,803,443 8,097,178Borrowing from Financial Institutions 9,789,998 7,562,164 8780541 16,890,675 8,946,624

Deposits and other Accounts 124,391,460 123,821,807 130336164 135,990,147 154,544,451

Other Liabilities 8,895,267 9072090 8,438,055 8,580,119

Total liabilities 145,308,743 144,891,057 153481705 169,122,320 180,168,372Share holders equity

share Capital 1,820,541 1,820,541 1820541 2,202,855 2,423,140

Reserves 1,716,773 1,796,609 2092453 2,277,630 2,278,980

Unappropriate profit 387 1,136 1161 3,185 283,940

3,537,701 3,618,286 3914155 4,483,670 4,986,060Surplus on revaluation of Assets 1248694 1,216,416 1188958 1,109,073 1,900,962

4786395 4,834,700 5,103,113 5,592,743 6,887,022 150,095,138 149,725,757 158584818 174,715,063 187,055,394

231

Appendix 3.2 continued Balance sheets for ABL before Privatizations

Assets 1986 1987 1988 1989 1990 Cash on hand 876138336 989431736 1220635306 1535541904 1788480216

Balance with other banks 909345059 1067620126 912403861 1694064913 1073291193

Money at call and short notice 11400525 67268386 50000000 nil 400000000

Total Current Assets 1796883920 2124320248 2183039167 3229606817 3261771409Investment at cost 3101518341 5191386024 7237633698 6424756884 7268407105

Advances 5616120702 6054814297 5490507467 8087814754 11115241689

Premises 18477295 22431630 26387790 25224955 25653330

Furniture and Fixture 52344244 61598638 69652125 81576358 104992195

Other Assets 862905791 860267475 1203617884 1298241778 1542675683

Total fixed Assets 9651366373 12190498064 14027798964 15917614729 20056970002

Total Assets 11448250293 14314818312 16210838131 19147221546 23318741411

Liabilities

Deposit and other accounts 10058018097 12337440831 14571231598 16637511090 19824866983

Borrowing from other banks 254785209 373896644 422354421 694742342 1218670343

Bills payable 153967210 344105532 262506866 361060586 588109953

Other Liabilities 769329231 898006315 576403989 1056359560 1269371265

Total Liabilities 11236099747 13953449322 15832496874 18749673578 22901018544Capital

Issued and subscribed capitals 132267725 272227725 272227725 272227725 272227725

Reserve fund and other reserve 77800000 87100000 104100000 123300000 143500000

Reserve for issue of bonus share 1992150 1992150 1992150 1992150 1992150

Profit 90671 49115 21382 28093 2992

Total Capital 212150546 361368990 378341257 397547968 417722867

Total Liabilities and capital 11448250293 14314818312 16210838131 19147221546 23318741411

232

Appendix 3.2 continued Balance sheets for ABL After privatization

1996 1997 1998 1999

ASSETS (Rs, 000) (Rs, 000) (Rs, 000) (Rs, 000)

Cash in hand and with State Bank and NBP 7,195,269 6,316,337 7,646,937 8,601,193

Balance with other banks 1,627,627 1,380,840 1,878,796 1,757,510

Money at call and short notice - 450,000 100,000 300,000

Total Investments 15,552,713 20,192,699 25,605,470 26,774,766

Total Loans and Advances (net of provisioning) 32,766,263 36,231,357 42,719,179 55,263,762

Fixed Asset 901,904 872,730 2,488,619 3,062,045

Other Assets 5,395,334 6,959,687 8,919,166 11,167,055

63,439,110 72,403,650 89,358,167 106,926,331

LIABILITIES & OWNER'S EQUITY

Total Deposits 55,896,800 63,429,709 76,541,153 93,107,291

Borrowings 4,015,193 4,914,558 6,243,517 7,144,163

Bills Payable 548,575 802,367 1,084,151 1,073,491

Other Liabilities 1,589,147 1,741,598 2,487,440 2,588,936

total liabilities 62,049,715 70,888,232 86,356,261 103,913,881

Paid up capital 950,797 1,063,156 1,063,156 1,063,156

Reserves 438,598 452,262 1,938,750 1,949,294

total owner's equity 1,389,395 1,515,418 3,001,906 3,012,450

63,439,110 72,403,650 89,358,167 106,926,331

233

3.2 continued Financial Statement of UBL

UNITED BANK LIMITED RS. In, 000

1998 1999 2000 2001 2002

Earning Assets Rs. 85979751 Rs. 105247148 Rs. 117287577 Rs. 114367602 Rs. 113187063 Rs. 147130367

Total Assets Rs.101491125 Rs. 139991644 Rs. 154716101 Rs. 160572595 Rs. 160852206 Rs. 183003466

Net Income Rs. 2690949 Rs. 507058 Rs. 667092 Rs. (7477876) Rs. 1414306

Interest Margin Rs. 1710380 Rs. 2765878 Rs. 4759680 Rs. 5060183 Rs. 5778566

EBT Rs. (6600551) Rs. 1253058 Rs.1645497 Rs. (5741086) Rs. 2731308

Provision Rs. 3996700 Rs. (840317) Rs. 1526964 Rs. 1488083 Rs. 851958

Net Charge Off Rs. 786408 Rs. 352985 Rs. 555541 Rs. 511950 Rs. 865498

Average Equity Rs. (18531434) Rs. 5531202 Rs. 5866362 Rs. 6726604 Rs. 887222 Rs. 8626252 Average Deposit Rs. 106710654 Rs. 117718301 Rs. 127133204 Rs. 129679245 Rs. 134961054 Rs. 154914619

Total Loans Rs. 54222928 Rs. 48468324 Rs. 61238410 Rs. 74156421 Rs. 78492649 Rs. 74117401

Source: Annual Reports of UBL for 1997 to 2002.

234

Appendix 3.3 Transaction Cost of MCB

A: MCB before privatization b Staff Cost % Transaction Cost of Allied Bank Of Pakistan

operating cost as % of Total Income/ per unit of a: ABL before privatization b: Staff Cost %

years Total Income/Revenue Revenue for Rs. 1 years t/income/Revenue operating cost as % of Total Income/ per unit of

1987 92 1 1987 24.29 years

Total Income/Revenue Revenue for Rs. 1 years t/income/Revenue

1988 91 1 1988 26 198

6 96 1 1986 28

1989 91 1 1989 26.2 198

7 96 1 1987 29

1990 95 1 1990 30.24 198

8 97 1 1988 29.72

1991 95 1 1991 26.71 198

9 97 1 1989 27.6

After privatization After privatization 199

0 96 1 1990 29.07

1997 95 1 1997 22.49 After privatization

1998 95 1 1998 22.32 199

7 99.65 1997 24.02

1999 93 1 1999 27.3 199

8 98 1998 26.14

2000 92 1 2000 27.07 199

9 99.35 1999 23.25

2001 89 1 2001 24.22 200

0 N.A 2000 N.A

MCB before privatization

2001 N.A 2001 N.A

C Staff Cost per employee No. Of Employees d Staff cost P/U of ABL before privatization

years In Rupees Per Annum Operating cost % c: Staff Cost per employee No. of employees

1987 49627 12845 1987 26.51 years In Rupees Per Annum

1988 52556 12685 1988 28.52 198

6

1989 57791 12890 1989 28.5 198

7 Data is not available in the reports

1990 76511 12904 1990 31.79 198

8

1991 80423 13031 1991 28.24 198

9

After privatization After privatization 199

0

1997 262810 13610 1997 23.47 After privatization

1998 342355 12858 1998 26.33 199

7

1999 386539 12557 1999 28.85 199

8

2000 421850 12133 2000 32.38 199

9 Dta is not available in the reports.

2001 445976 11614 2001 30.23 200

0 Source: Calculated from annual reports for the said periods.

2001

235

Appendix 3.3 Particulars of provision against Non performing Advances for after privatization of MCB

(Pakistani Rupees '000)

1997 1998 1999 2000 2001

Provision Specific General Total Total Specfic General Total Specific General Total Specific General Total

Opening Balance 4306550 4E+06 4306550 3412679 566000 3978679 3497386 566000 4063386 4054778 566000 4620778

Exchange adjustment 3482 4944 3482 90452 90452 99593 99593 -14564 -14564

Change for the Year 144000 806252 144000 1024305 1024305 1704944 1704944

Amount written off -331134 -691648 -331134 -5643 -5643 -144000 -144000 -58304 -58304

Reversal -144219 -1656 -144219 -102 -102 -422506 -422506

Intertransfer -566000 566000 503702 -503702

Closing Balance 3412679 566000 4E+06 3978679 3497386 566000 4063386 4054778 566000 4620778 6190556 62298 6252854

Provision against

Advances to bank

Advances to others 4E+06 3978679 4063386

provision for advances/loans as a percentage of total loans/advances. (Rupees,000)

1997 1998 1999 2000 2001

provison T/Advances % provison T/Advances % provison T/Advances % provison T/Advances % provison T/Advances %

4306550 6.9E+07 6.27 4E+06 6.7E+07 5.95 4E+06 7.1E+07 5.68 5E+06 9.1E+07 5.08 6252854 8.3E+07 7.55

Percentage of written off against T/advances

1997 1998 1999 2000 2001

0.48 1.03 0.008 0.16 0.07

236

Appendix 3.3 Continued Particulars of provision of non-performing advances after privatization of ABL (Pakistani Rupees '000) 1997 1998 1999 2577429 3417099 3070768 1815 1301 2652 712492 -59949 -103244 -30275 -254985 -53131 185312 10597 -35495 3417099 3070768 2954519 3417099 3070768 2954519 provision for advances/loans as a percentage of total loans/advances.

1997 1998 1999 Provision T/Advances % Provision T/Advances % Provision T/Advances % 3417099 39648456 8.62 3070768 45789947 6.72 2954519 58218281 5.07 Percentage of write off against T/advances 1997 1998 1999 0.15 0.23 0.05

237

Appendix 3.4

Interest Risk Measurement

Before Privatization MCB

1987 1988 1989 1990 1991

Interest and discount or return 2247813441 2176215890 2269720109 2638307048 3192089572

Interest on deposits borrowing etc. 1452592066 1323036347 1496323415 1709808151 2114270463

Difference 795221375 853179543 773396694 928498897 1077819109

% of net interest income to T/Revenue. 35.3775523 39.204729 34.0745403 35.192981 33.7653153

After privatization

Pakistani Rupees in Millions

1997 1998 1999 2000 2001

Interest and discount or return 16938510 17197805 15755990 14124242 17033225

Interest on deposits borrowing etc. 10168048 11065063 9351947 7238680 7544897

Difference 6770462 6132742 6404043 6885562 9488328

% of net interest income to T/Revenue. 39.9708239 35.6600275 40.6451324 48.7499577 55.704824

ABL Before Privatization (In Pakistani Rupees)

1986 1987 1988 1989 1990

Interest and discount or return 899898667 1020801008 1097194637 1297046464 1655157873

Interest on deposits borrowing etc. 564044272 630851921 685760943 880659595 1103412084

Difference 335854395 389949087 411433694 416386869 551745789

% of net interest income to T/Revenue. 37.3213571 38.2003039 37.4986971 32.1026949 33.3349343

After Privatization(Pakistani Rupees in'000)

1997 1998 1999 2000 2001

Interest and discount or return 5026787 6059060 7287432Data not available

Interest on deposits borrowing etc. 4639053 5289971 6953006

Difference 387734 769089 334426

% of net interest income to T/Revenue. 7.71335646 12.6932065 4.58907884

238

Appendix 3.4 continued Capital Risk of MCB Before Privatization

1987 1988 1989 1990 1991

Advances 13110617022 13096086856 15548316766 2757663780 3733992169

Capital* 12739027561 3982991762 4357760821 5596211362 5907492195

% 0f total capital to T/Loans 97.16573629 30.41360221 28.02721919 202.9330552 158.2084784

Capital Risk of MCB After Privatization (Rs.In, OOO) 1997 1998 1999 2000 2001

Advances 64365285 62920478 67432576 86359139 76585999

Capital* 14576393 12396864 12693535 22483418 15833646

% 0f total capital to T/Loans 22.6463582 19.70243138 18.82403988 26.03478712 20.674335

ABL Befor privatization (in Rupees)

1986 1987 1988 1989 1990

Advances 5616120702 6054814297 5490507467 8087814754 11115241689

Capital* 464943602 733273484 798703528 1092290310 1636393210

% 0f total capital to T/Loans 8.278732361 12.11058586 14.5469892 13.5053824 14.72206593

ABL after privatization (000)

199 1998 1999

Advances 36231357 42719179 55263762

Capital* 6429976 9245423 10156613

% 0f total capital to T/Loans 17.74699192 21.6423237 18.37843215

239

Appendix 3.5 Capital adequacy ratios

MCB before Privatization 1987 1988 1989 1990 1991

Assets 36720602828 37235514464 39572596150 43590210123 55819696091

Shareholders contribution to T/Assets 12739027561 3982991762 4357760821 5596211362 5907492195

% of Shareholders to T/Assets 2.882527936 9.348629545 9.080947251 7.789235842 9.448966541

After Privatization (000)

1997 1998 1999 2000 2001

Assets 150095138 149725757 158584818 174715063 187055394

Shareholders contribution to T/Assets 14576393 12396864 12693535 22483418 15833646

% of Shareholders Contribution to T/Assets 10.29713853 12.07771231 12.49335335 7.770840848 11.81379159

AbL Brfore Privatization ( In rupees)

1986 1987 1988 1989 1990

Assets 13725521165 17495291259 21409793271 27372345626 34203739405

Shareholders contribution to T/Assets 464943602 733273484 798703528 1092290310 1636393210

% of Shareholders Contribution to T/Assets 29.52083028 23.85916256 26.80568261 25.05958844 20.90190744

After Privatazation(000)

1997 1998 1999 2000 2001

Assets 1569897 1937514 2063418

Shareholders contribution to T/Assets 6429976 9245423 10156613 data not avaialable.

% of Shareholders Contribution to T/Assets 0.244152855 0.209564668 0.20316005

240

3.5 Continued

Source State bank Report for 2002

Capital Adequacy Ratios 2000 2001 2002Capital to Risk weighted assets Public sector comm.banks 10.4 9.6 12.3Domestic private banks 9.2 9.5 9.7Foreign banks 18 18.6 23.2specialized banks -3.3 -13.9 -31.7All Banks 9.7 8.8 8.8

241

Appendix 3.5 Liquidity

Management

MCB befor

Privatization a: cash as ratio of demand deposit years 1987 1988 1989 1990 1991Cash* 2911594683 4176609094 2835323850 4031226481 6457761511Demand deposit 4428245822 4848430143 5745813777 6355700033 8896130809% of cash for demand deposit 65.75052064 86.14353452 49.34590573 63.42694684 72.5906762

After privatization

years 1997 1998 1999 2000 2001Cash 13349361 14347299 21273371 17328837 24285589Demand deposit 45613941 28791970 27293325 28858208 33859944% of cash for demand deposit 29.26596717 49.83090424 77.94349351 60.04820881 71.7236538

b:Liquid funds/total deposits Before privatization

years 1987 1988 1989 1990 1991Liquide Funds** 16220808034 16260343846 18475132958 19768408888 2.7355E+10Total Deposit 22591537389 21899433139 25324893462 27690506893 3.5029E+10% of total deposit to liquid funds 71.80037266 74.25006731 72.95246073 71.39056343 78.0932613

After privatization

years 1997 1998 1999 2000 2001

242

Liquide Funds 177059310 176911444 165091754 142583756 190376686

Total Deposit 124391460 123821807 130336164 135990147 154544451% of total deposit to liquid funds 142.3404066 142.8758377 126.6661139 104.8485932 123.185714

c:liquid funds/total assets Before privatization

years 1987 1988 1989 1990 1991Liquide Funds 16220808034 16260343846 18475132958 19768408888 2.7355E+10Totl Asseta 36720602828 37235514464 39572596150 43590210123 5.582E+10% of total assets to liquid assets. 44.17358863 43.66891147 46.68668411 45.35057031 49.0067295

After privatization

years 1997 1998 1999 2000 2001Liquide Funds 177059310 176911444 165091754 142583756 190376686Totl Asseta 150095138 149725757 158584818 174715063 187055394% of total assets to liquid assets. 117.9647205 118.1569875 104.1031267 81.60930921 101.775566

243

Annexure 3.5 continued. Liquidity

Management

ABL befor

Privatization a: cash as ratio of demand deposit years 1986 1987 1988 1989 1990Cash* 1785483395 2057051862 2133239167 3229606817 2861771409Demand deposit 2269242718 2908723717 3626813967 4412722328 5198435940% of cash for demand deposit 78.6819048 70.7200842 58.81854395 73.1885348 55.05062373

After privatization years 1997 1998 1999 Cash* 7697177 9525733 14240438 Demand deposit 28053561 24882487 36615111 % of cash for demand deposit 27.43743299 38.2828814 38.89224315

b:Liquid funds/total deposits Before privatization

years 1986 1987 1988 1989 1990Liquide Funds** 5831488410 2.8047E+10 20832769682 2.1864E+10 24357915814Total Deposit 10058018097 1.2337E+10 14571231598 1.6214E+10 19824866983% of total deposit to liquid funds 57.97850385 227.332936 142.9719207 134.845435 122.8654691 After privatization years 1997 1998 1999 Liquide Funds** 40036918 98251294 55620179 Total Deposit 63429709 76541153 93107291 % of total deposit to liquid funds 63.12013508 128.364011 59.73772666 c:liquid funds/total assets Before privatization years 1986 1987 1988 1989 1990Liquide Funds 5831488410 2.8047E+10 20832769682 2.1864E+10 24357915814Totl Asseta 13725521165 1.7495E+10 21409793271 1.7742E+10 21645420203% of total assets to liquid assets. 42.48646255 160.312086 97.30486146 123.233983 112.531499 After privatization years 1997 1998 1999 Liquide Funds** 40036918 98251294 55620179

Totl Asseta 72403560 89358167 106926331Data is not available

% of total deposit to liquid funds 55.29689148 109.952226 52.01728936

244

Appendix 3.6 Earning and profitability

a:Return on assets Earning and Profitability for MCB before privatization

a: income/assets

MCB before privatization

Years 1987 1988 1989 1990 1991Income(before tax) 199358535 227012385 249621998 158860942 212724843

T.Assets 35205656741 35697001582 39572596150 43590210123 55819696091

% of income to assets 0.566268473 0.635942446 0.630795101 0.36444179 0.3810928

After privatization (Rs.000)

Years 1997 1998 1999 2000 2001Income(before tax) 1234788 947003 1210539 1321795 2101176

T.Assets 150095138 149725757 158584818 174715063 187055394

% of income to assets 0.822670219 0.632491709 0.763338518 0.756543241 1.123290783

b:return on equity

MCB before privatization

Years 1987 1988 1989 1990 1991Income (before tax) 199358535 227012385 249621998 158860942 212724843

Capital* 12739027561 3982991762 4357760821 5596211362 5907492195

% of income to capital 1.564943117 5.699544427 5.728217042 2.838723053 3.60093312

After privatization (Rs.000)

Years 1997 1998 1999 2000 2001Income (before tax) 1234788 947003 1210539 1321795 2101176

Capital* 14576393 12396864 12693535 22483418 15833646

% Of income to capital 8.471149207 7.639052909 9.536657834 5.87897712 13.27032321

a: income/assets ABL before privatization

Years 1986 1987 1988 1989 1990

Income (before tax) 37503843 46158444 50072267 53106711 61174899

Assets 13725521165 17495291259 21409793271 27372345626 34203739405

ROA 0.273241668 0.263833527 0.233875528 0.19401593 0.178854418

ABL after privatization

245

Years 1997 1998 1999 2000 2001Income (before tax) 28766 169592 71098

Continued 3.6

Assets 1569897 1937514 2063418

ROA 1.832349511 8.753072236 3.445642134

b:Return on equity ABL before privatization

years 1986 1987 1988 1989 1990

income(before tax) 37503843 46158444 50072267 53106711 61174899

Capital* 464943602 733273484 798703528 1092290310 1636393210

ROE 8.066320913 6.294847012 6.269193167 4.861959363 3.738398487

After privatization

years 1997 1998 1999 2000 2001income(before tax) 28766 169592 71098

Capital* 6429976 9245423 10156613

ROE 0.447373365 1.834334676 0.700016826

246

Appendix 4.1 Inflows of foreign investment in Pakistan

Source. Economic survey of Pakistan 2002-2003.

In million US $ As % of Total

years FDI Portfolio Total FDI Portfolio Total 1984-85 70.30 23.40 93.70 75.0 25.0 100.01985-86 145.20 16.00 161.20 90.1 9.9 100.01986-87 108.00 21.00 129.00 83.7 16.3 100.01987-88 162.00 10.50 172.50 93.9 6.1 100.01988-89 210.20 7.20 217.40 96.7 3.3 100.01989-90 216.20 -4.70 211.50 102.2 -2.2 100.01990-91 246.00 -9.00 237.00 103.8 -3.8 100.01991-92 335.10 218.50 553.60 60.5 39.5 100.01992-93 306.40 136.80 443.20 69.1 30.9 100.01993-94 354.10 288.60 642.70 55.1 44.9 100.01994-95 442.40 1089.90 1532.30 28.9 71.1 100.01995-96 1101.70 205.20 1306.90 84.3 15.7 100.01996-97 682.10 267.40 949.50 71.8 28.2 100.01997-98 601.30 221.30 822.60 73.1 26.9 100.01998-99 472.30 27.30 499.60 94.5 5.5 100.01999-2000 423.70 54.6 478.30 88.6 11.4 100.0

247

Appendix No 4.2

r = ∑∑∑∑

∑ ∑ ∑−− )/)(()/)((

n / y)( x)( -xy 2222 nyynxx

β =∑∑

∑ ∑ ∑==

===

− 21

21

n1i1i1i

)(YX - XY

XXnn

ni

ni

nn

γ2=1-

nY

Y

en

ini

n

ii

i

n

i

∑∑

∑=

−=

=22

1

1

2

)1(

Years X Y X2 y2 XY

No. Of Deposits Investment

1982 18251389 32261.8 3.33113E+14 1040823739 5.88823E+11

1983 19565836 45033.5 3.82822E+14 2028016122 8.81118E+11

1984 20488157 38572.3 4.19765E+14 1487822327 7.90275E+11

1985 21215465 49056.1 4.50096E+14 2406500947 1.04075E+12

1986 21720814 60230.4 4.71794E+14 3627701084 1.30825E+12

1987 22578568 87273.6 5.09792E+14 7616681257 1.97051E+12

1988 23947814 85882.1 5.73498E+14 7375735100 2.05669E+12

1989 25140528 85303.9 6.32046E+14 7276755355 2.14459E+12

1990 26756571 81226.1 7.15914E+14 6597679321 2.17333E+12

1991 30993837 120021 9.60618E+14 14405040441 3.71991E+12

1992 27106754 192185.5 7.34776E+14 36935266410 5.20953E+12

1993 27973622 208043.1 7.82524E+14 43281931458 5.81972E+12

1994 29520563 267805.2 8.71464E+14 71719625147 7.90576E+12

1995 31085736 268794.3 9.66323E+14 72250375712 8.35567E+12

1996 31723719 322875.8 1.00639E+15 1.04249E+11 1.02428E+13

1997 32271603 375286.2 1.04146E+15 1.4084E+11 1.21111E+13

1998 29772355 420830.2 8.86393E+14 1.77098E+11 1.25291E+13

1999 29710720 350326.2 8.82727E+14 1.22728E+11 1.04084E+13

2000 28409347 338796.6 8.07091E+14 1.14783E+11 9.62499E+12

2001 28043818 303782.4 7.86456E+14 92283746550 8.51922E+12

Total 526277216 3733586.3 1.42151E+16 1.03003E+12 1.07401E+14

248

Appendix No 4.3

r =

∑∑∑∑∑ ∑ ∑

−− )/)(()/)((

n / y)( x)( -xy 2222 nyynxx

β =∑∑

∑ ∑ ∑==

===

− 21

21

n1i1i1i

)(YX - XY

XXnn

ni

ni

nn

γ2 =1-

nY

Y

en

ini

n

ii

i

n

i

∑∑

∑=

−=

=22

1

1

2

)1(

Years X (No of Deposits) Y (Investment) X2 Y2 XY 1982 18251389 32261.8

3.33113E+14 1040823739 5.88823E+111983 19565836 45033.5

3.82822E+14 2028016122 8.81118E+111984 20488157 38572.3

4.19765E+14 1487822327 7.90275E+111985 21215465 49056.1

4.50096E+14 2406500947 1.04075E+121986 21720814 60230.4

4.71794E+14 3627701084 1.30825E+121987 22578568 87273.6

5.09792E+14 7616681257 1.97051E+121988 23947814 85882.1

5.73498E+14 7375735100 2.05669E+121989 25140528 85303.9

6.32046E+14 7276755355 2.14459E+121990 26756571 81226.1

7.15914E+14 6597679321 2.17333E+121991 30993837 120021

9.60618E+14 14405040441 3.71991E+121992 27106754 192185.5

7.34776E+14 36935266410 5.20953E+121993 27973622 208043.1

7.82524E+14 43281931458 5.81972E+121994 29520563 267805.2

8.71464E+14 71719625147 7.90576E+121995 31085736 268794.3

9.66323E+14 72250375712 8.35567E+121996 31723719 322875.8

1.00639E+15 1.04249E+11 1.02428E+131997 32271603 375286.2

1.04146E+15 1.4084E+11 1.21111E+131998 29772355 420830.2

8.86393E+14 1.77098E+11 1.25291E+131999 29710720 350326.2

8.82727E+14 1.22728E+11 1.04084E+132000 28409347 338796.6

8.07091E+14 1.14783E+11 9.62499E+122001 28043818 303782.4

7.86456E+14 92283746550 8.51922E+12

Total 526277216 3733586.3 1.42151E+16 1.03003E+12 1.07401E+14