ISLAMABAD: The World Bank said on Friday it had approved a $1 billion loan for Pakistan and “envisages” another $11 billion package spanning five years.

The loans are meant to support Pakistan’s struggling energy sector and bolster its efforts to increase growth and investment and arrest poverty.

“The World Bank Group approved a package of assistance worth US$1 billion to support Pakistan’s economic reforms on Thursday,” the bank said in a statement.

“The assistance package consists of two development policy credits (DPCs) to support the government of Pakistan’s efforts to improve the power sector, and reinvigorate growth and investment for reducing poverty and building shared prosperity,” it said.

The bank also said it was “envisaging” $11 billion worth of loans under a new country partnership strategy for Pakistan over the next five years, covering fiscal years 2015 to 2019.

The government, however, said the World Bank had approved the $11 billion partnership strategy to tackle its four main challenges of energy, economy, education and fighting extremism.

“The other landmark achievement of the day was the approval of country partnership strategy under which Pakistan will get US$11 billion in the shape of project loans and budgetary support,” it said.

Finance Minister Ishaq Dar has “congratulated the whole nation on this success and observed that the country partnership strategy is aligned fully with the vision of Pakistan’s development challenges around the four Es ‘Energy, Economy, Extremism and Education’, based on the manifesto of the Pakistan Muslim League (N) and its commitment to the nation,” it said.

Philippe Le Houerou, vice president for the Bank’s South Asia region, praised Pakistan for stabilising its economy and starting reforms in the power sector.

“The government of Pakistan deserves appreciation for stabilising the economy, initiating reforms in the power sector as well as revenue mobilisation and drawing in the private sector for spurring growth”, Le Houerou said in a statement. 

The targets were calculated by subtracting government and agriculture loans from the total loan status of each of the banks

Bangladesh Bank has set a total credit limit of Tk6,186 crore for four state-owned banks for this year.

Based on adjusted loan status of the previous year, the central bank has set separate credit targets for the banks - Sonali, Agrani, Janata and Rupali – with signing separate memorandum of understandings (MoU) recently.

The targets were calculated by subtracting government and agriculture loans from the total loan status of each of the banks.

As the banks are to disburse certain amount of loans to the government and agriculture sector every year, the ceiling of bank credit is determined on the basis of the adjusted loans so the banks could disburse loans in other sectors, said a senior executive of Bangladesh Bank. 

He said the central bank has tightened regular monitoring on aggressive loan disbursements, although most of the banks have failed to achieve the growth target last year due to overall slower credit growth in the country amid sluggish investment climate and political unrest.

“As a result, the central bank did not extend the credit ceiling of most of the banks so they could fully comply with their respective targets and other conditions set by the central bank.”

All the four banks failed to achieve the credit growth target set by the central bank in 2013, excepting Rupali Bank. Considering the credit disbursement performance of the banks,

Bangladesh Bank did not expedite the new ceiling for Agrani and Janata, rather it has cut the credit limit for Sonali Bank.

The credit target has been increased only for Rupali Bank as it had surpassed the loan ceiling fixed for last year. The credit ceiling of Sonali Bank has been set at Tk1,328 crore for the year 2014, which is 6% of the adjusted loan status of Tk22,133 crore in 2013.

The adjusted loan growth rate of Sonali Bank was negative 7.07% in the last year against the target limit of 8% set by Bangladesh Bank. The total loan growth of the banks decreased by 11.67% or Tk3,963 crore in the last year.

The loan disbursement limit of the Agrani Bank has been set at Tk1,676 crore for the year 2014, whichi is 10% of the adjusted loan status of Tk16,764 crore of 2013.

Adjusted loan growth rate of Agrani Bank was negative 0.63% during the last year against the target limit of 10%. Total loan disbursement of the bank reduced by 7.76% or Tk1529.44 crore in the year 2013.

The credit limit of the Janata Bank has been set at Tk2,206 crore for the year 2014, which is 10% of the adjusted loan status of Tk22,067 crore of 2013.

The growth target of the Janata Bank was same in the last year but the bank was able to achieve only 1.15% of its target. The total loan disbursement of the bank was reduced by 8.59% or Tk2,405 crore in the year 2013. The central bank set the credit limit of the Rupali Bank at Tk976 crore for the year 2014, which is 12% of the total adjusted loan status of Tk8,139 crore of 2013.

The adjusted loan growth of the bank increased by 13.98% in the year 2013 against its 10% target limit of the adjusted loan status set in the MoU. The total loan growth of the bank increased by 18.59% or Tk1,613 crore in the last year.

The central bank punished the Rupali Bank asking it to block the excess loans that it had disbursed beyond its target limit.

News:Dhaka Tribune/30-Apr-2014

DHAKA : With phenomenal increase in the loan disbursement, 

Probashi Kallyan Bank (PKB), a specialized bank for expatriates’ welfare, helped hundreds of people seeking livelihood in the oversees job market, reports BSS.The bank experienced sharp rise in its loan disbursement to the potential migrant workers since its establishment three years ago.According to the bank, its credit disbursement to the migrant workers rose phenomenally by 87 percent at the end of last year when it gave Taka 20.50 crore migration loans to 1950 people to help them get overseas jobs. The bank assisted 1140 people to migrate for employment in 2012 by giving them Taka 10.98 crore loans.At the same time, the bank also gave Taka 70 lakh loan to 30 people to rehabilitate them after returning home as retrenched workers.Under the migrant loan programme, the people got jobs in countries, including Malaysia, Saudi Arabia, Oman, Qatar, South Korea, Singapore, Bahrain, Jordan, United Arab Emirate, Italy and Mauritius.“The loan disbursement increased though the net migration was on decline as the bank gave special attention to help people migrate overseas for employment”, PKB managing director and chief executive officer C M Koyes Sami told BSS.He said the bank gave loan to all eligible applicants and the amount of loan disbursement would increase in the coming years.The managing director said the bank till March 2014 gave Taka 35 crore migration loan to 4,000 people.Established in April 20, 2011, the bank for the expatriates’ welfare provides collateral-free loan at only 9.0 percent rate of interest to the potential workers for going abroad.The amount of loan is Taka 84,000 for the workers going to the countries in Asia, Africa and Middle East. The people who want to go to Europe, America and other western countries can get Taka 1.10 lakh loan for migration.Koyes Sami said the bank had already taken various initiatives to help people get jobs in different countries. Among the initiatives are opening of branches in divisional headquarters and 27 districts where concentration of potential migrants is relatively higher.Three booths have also been opened at three international airports of the country besides opening of liaison offices in Malaysia, Saudi Arabia, Bahrain, United Arab Emirate and South Korea.Besides, he said the bank already contacted the workers importing countries to make an arrangement for more fund so more people can get loan under the credit scheme for migrants.

Dhaka-President of Islamic Development Bank (IDB) group Dr. Ahmad Mohamed Ali Al-Madani distributed sacrificial meat among one thousand two hundred destitute poor people at Dumni and Vatara Union, Dhaka as chief guest on Monday , reports in press rease. Dhaka District Administration in association with Islami Bank Bangladesh Limited organized the meat distribution program which was gifted by Royal Kingdom of Saudi Arabia for poor people. Prof. ANM Abduz Zaher, Chairman of IBBL, Sheikh Yousuf Harun, Deputy Commissioner, Dhaka District, Engr. Mustafa Anwar, Vice Chairman, AKM Abdul Malek Chowdhury, Deputy Managing Director, AHM Latif Uddin Chowdhury, Executive Vice President of Islami Bank Bangladesh Limited, , Shariful Islam Bhuiyan, Chairman, Dumni Union Parishad and Ataur Rahman, Chairman, Vatara Union Parishad along with High officials of IBBL and District administration were present on the occasion. Dr. Ahmad Mohamed Ali said that Islamic Development Bank has been working for developing the education, health and infrastructure of Bangladesh with a view to promoting the living standard its people.

Pubali Bank Limited has won “Certificate of Merit” award of ICMAB Best Corporate Award-2013 in the category of Private Commercial Bank (Traditional Operation) by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for transparency, accountability and establishing good governance, informed by the authority. Helal Ahmed Chowdhury, Managing Director & CEO of Pubali Bank Limited received the award on behalf of the bank from Abul Maal Abdul Muhith, Hon’ble Minister, Ministry of Finance at a function at Radisson Blu Water Garden in Dhaka recently.
The Managing Director of Pubali bank said that the bank maintained the maximum level of transparency, accountability and good governance during the period which helped it to get such an award. The Managing Director thanked all members of ICMAB Best Corporate Award Committee for selecting Pubali bank as one of the recipients of this prestigious award and shared this achievement with valued clients, shareholders, members of the Board and the employees of the bank.
President of ICMAB Mohammad Selim FCMA, Chairman of award evaluation committee Muzzaffar Ahmed FCMA, FCS and ICMAB Secretary Jamal Ahmed Choudhury were present at the award giving ceremony.