In a meeting yesterday with IMF’s new Pakistan Representative, Ms. Teresa Daban, the IMF sounded positive on the potential of Pakistan's economy. Discussion highlighted the need to attract FDI, and localization of industry’s supply chain, particularly in the backdrop of CPEC’s energy and roads projects to raise Pakistan’s capacity to repay debt. Key takeaways from the meeting are:
Currently Pakistan has drawn about 216% of its current quota (USD6.15bn) under the Extended Financing Facility (EFF), where the repayments begin this month. The maximum loan that can be drawn under an EFF is 435% of its quota (approx. USD12.9bn as of today) over the period of the program.
The IMF rep categorically stated that the US-Pak strained relations are highly unlikely to affect future consensus-based decisions made by the Board, despite US having a sizeable 17% shareholding.
BMA is amongst the leading financial groups in Pakistan. BMA Capital’s core areas of business include Capital Markets, Corporate Finance & Advisory, Asset Management, and Financial Products Distribution. BMA Capital is the leader in privatisation advisory in Pakistan, having successfully advised on over 50% of all privatisations in Pakistan, by value, in transactions valued in excess of US$4 billion. Recent transactions include joint lead managing the $813 million GDR Offering of 10% of OGDCL on the London Stock Exchange in 2006-07, and advising Etisalat on their successful acquisition of a 26% strategic stake in Pakistan Telecommunications Company Limited (PTCL) for US$2.6 billion, the largest M&A transaction and foreign direct investment in Pakistan’s history. The firm is among the top brokers in the Pakistan equity and treasury markets, and is among a handful of firms that comprehensively cover all segments of the capital markets. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media. BMA Capital’s retail brokerage brand, BMA Trade, has launched a nationwide network of branches as well as a comprehensive online trading platform, enabling investors across Pakistan to take part in the capital markets.
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