The 13th Board meeting of the Pak-Oman Investment Company was held on April 29, 2004 in Muscat.
The meeting was chaired by His Excellency Yahya Bin Said Bin Abdullah Al-Jabri, chairman, Capital Markets Authority, Oman; and attended by Dr Waqar Masood Khan, secretary, Economic Affairs Division, Government of Pakistan; HE Nasser Bin Khamis Al-Jashmi, under secretary, Ministry of Oil & Gas, Oman; Ahmed S. Al-Wahaibi, deputy chief executive officer, Oman Oil Company, Oman; Humayun Murad, CEO, Orix Leasing Pakistan Ltd; Zafar Iqbal, MD and CEO, Pak-Oman Investment Company; and Syed Jamal Macdi, CEO and company secretary.
The Board noted with pleasure the approval by the Sultanate of Oman for equity investment of $5.6 million to set up Pak Oman Micro Finance Bank (MFB).
In this regard, the Board on behalf of the Company expressed its sincere gratitude to the Minister of National Economy, Sultanate of Oman, His Excellency Ahmed bin Abdulnabi Macki and Pakistan's Finance Minister Shaukat Aziz for their key-role in bringing the Omani equity in the new bank.
Pak-Oman Microfinance Bank aims to work for eradication of poverty by assisting in creation of sustainable income opportunities for the lower strata of the population, particularly women.
The establishment of this micro finance bank is in line with the development mandate of Pak-Oman as well as it compliments the Government of Pakistan's efforts towards poverty alleviation.
Based in Karachi, the Rs 500 million paid-up capital bank will cover the entire domestic population with a network of regional offices and branches.
The Board approved the financial results for the first quarter ended March 31, 2004, and was pleased with the performance of the Company, and expressed its satisfaction over the results.
In the quarter one of 2004, the Company earned profit before-tax of Rs 114.51 million ($1.99 million) while the total assets increased to Rs 7,481 million ($130 million).
The credit and advances portfolio has risen to Rs 2.06 billion ($35.90 million). Effective risk management and prudent credit policy has helped develop and accumulate a sound portfolio with zero default to date.
The managing director apprised the Board of Directors that besides, posting excellent results, the Pak-Oman has also made significant progress in positioning itself as a leading player in the market, thereby fulfilling its core objectives.
He also briefed the Board about the Pak-Oman Investment Company's achievements such as securing highest level of credit rating within a year of commencement of operations, the only NBFI (non-bank financial institution) to be made a "Primary Dealer" by the central bank, appointment of the Pak-Oman as the consultant to the prestigious "Textile City Project", a mega infrastructure project involving the government, several financial institutions, and top tier textile sector industrialists.