Saudi Pak Industrial, Agri Investment reached Rs.10bn

ISLAMABAD: Amid efforts of consolidation and targeting low-risk businesses, the investment portfolio of Saudi Pak Industrial and Agriculture Investment Company Limited has reached to Rs.10 billion in different sectors of economy in the country.

The company has investments in various sectors including fertilizer, chemical, sugar, textile, communication and services sectors, a top official of the company told APP here Saturday.

"The company aims to launch several other investments programmes in future but these new businesses would be confined to high-rated or low-risk clients only," AGM/Chief Executive of Saudi Pak Industrial and Agriculture Company Limited, Muhammad Anwar said.

He said that the company had launched 8 investments projects worth Rs.550 million in various sectors including sugar, communication, energy and food.

He said that construction of high-rising commercial buildings in line with Saudi Pak Tower was also on cards adding that the company also intends to shift the office of Saudi-Pak Real Estate from Karachi to Islamabad as part of its consolidated efforts.

Anwar said that owing to loss of about Rs.505 million to the company during the last year, the board of directors have decided to consolidate the investments besides divesting investments from the weak business where the company has been suffering from losses. He said that the consolidation process may take 6-12 months.

The company was on recovery campaign and it had recovered Rs.1.7 billion since January 2011, he added.

Anwar said that the company has divested 51% shares amounting to Rs.225 million from Saudi-Pak Insurance Company which was facing losses as its book share prices have gone as down as Rs.4.50.

He said that by divesting, the company would get cash and could be saved from the further losses adding that this cash could be invested in other productivity schemes.

He said that divestment from the Saudi-Pak Insurance Company was already approved by its board of directors, SECP, CCP and SBP.

He said that focus of the future investment projects would be based on quality and would target only the high-rated and low risk-clients.

As part of its consolidated effort, the company would shift the head office of Saudi-Pak Real Estate (PKRE) from Karachi to Islamabad.

The PKRE would be involved in new projects besides continuing its own operations.

He said that PKRE would be made to undertake facility services management to the commercial buildings besides joint ventures would be launched for infrastructure projects.

On the overall economic situation, he said that over US $ 25 billion exports of the outgoing financial year showed that Pakistan had a great potential for investments in various sectors of economy which needed to be tapped properly for the economic prosperity.

However, he maintained that cost of doing business has gone higher due to various factors including energy shortage.

Copyright Reuters, 2011