HUBCO and CPPA Enter an Agreement for Payment of Overdue Receivables
The Hub Power Company Limited (HUBCO) and the Central Power Purchasing Agency [CPPA] (Guarantee) Limited (Power Purchaser) have initialed an agreement in furtherance of the Memorandum of Understanding (MoU) dated 21 August 2020, according to a notification issued to the Pakistan Stock Exchange (PSX).
Under the agreement between the HUBCO and the CPPA, the payment of overdue receivables is an integral part of it, and the payment mechanism envisaged is two installments, with 40 percent of the overdue receivables payable within 30 business days of signing it (comprising a third of cash and two-thirds of the financial instruments of the Pakistan Investment Bonds (PIBs) and Sukuks), and the remaining 60 percent payable six months thereafter through the same method as that of the first installment.
Govt raises profit rates on saving certificates
Move aimed at attracting higher investments in government papers
KARACHI:
The federal government has increased the rate of profit in a range of 12-96 basis points on various national saving certificates partly to attract higher investment in the government papers and partly to pass on benefit of rise in returns from Pakistan Investment Bonds (PIBs).
The Central Directorate of National Savings (CDNS), which operates under the ambit of the finance ministry, reinvests the funds received from retail investors into three to 10-year PIBs.
So far, the CDNS has mobilised a meagre investment of Rs28.68 billion in the first five months (Jul-Nov) of the current fiscal year compared to Rs371 billion in the previous full fiscal year 2020, according to the State Bank of Pakistan.
Banking sector deposits during 2020 increased by 22 per cent or Rs3.204 trillion to hit an 18-year high at Rs17.876tr. Reuters/File
KARACHI: Banking sector deposits during 2020 increased by 22 per cent or Rs3.204 trillion to hit an 18-year high at Rs17.876tr, latest data released by the State Bank of Pakistan (SBP) showed.
On the other hand, despite a significant increase in deposits, the banks failed to energise the economy as advances remained at just 10pc of the deposits added during 2020.
As per the SBP data, the banking sector advances during 2020 were Rs332bn.
Meanwhile, the banks used higher advances to invest in government papers. During 2020, the banks invested Rs3.186tr in T-bills and Pakistan Investment Bonds, taking the total investment in the government papers to Rs11.552tr.