950817

ICP to float

'Power Fund',

leasing co

RECORDER REPORT

KARACHI: The Investment Corporation of Pakistan (ICP) will broaden its activities and is expected to float a 'Power Fund' and also establish a leasing company before the end of the year.

According to sources close to the stock exchange, in view of the current economic conditons ICP has decicded to diversify its activities by establishing a leasing company besides floating a power fund to attract more business.

It is learnt that the Corporation is thinking of establishing the leasing company as a joint venture with a foreign investor. The idea behind the power fund programme is to take advantage of the package of incentives offered by the government in the fuel and energy sector, said stock market sources.

After receiving an overwhelming response to the 24th ICP Mutual Fund, the Corporation has launched its 25th ICP with an authorised capital of Rs. 400 million, of which Rs. 100 million were meant for investment by the general public.

"ICP Mutual Funds were the first of their kind to be introduced in Asia outside Japan when the Fund was first launched in 1967", said a stock broker.

Since its inception, the ICP and its consortium members have approved financial assistance to the local business amounting to over Rs. 13 billion which includes the corporation's own commitment of Rs. 4.2 billion.

The Corporation showed the best performance in 1993 and 10 ICP Mutual Funds earned the honour of being named among top 25 award winners of the Karachi Stock Exchange in 1993.

ICP has been also considering the possibility of floating an open-end mutual fund to capitalise on the existing potential in the market. "The prices in the market are realistic and there are chances of success for any open-end mutual fund", said a leading research analyst.