INDUSTRIAL DEVELOPMENTBANK

• Established in August 1961

• IDBP”S Objective
• The first Credit IDA to IDBP
• Hurdle by the implementation of the credit
• Difficult Environment
• Increase in arrears
• Weak standards
• Weak Procedure
IDBP”S Improvement
• Repayment Arrangement
• Special recovery ordinance
• Improvements in Strategy
• Provide long term foreign exchange
• Assist in the overall institutional improvement
• Assist IDBP in its efforts to improve the quality
ECONOMICAND INDUSTRIAL ENVIRONMENT

• Policy issue in the industrial Sector

• Complex rules and regulation
• Political stability
• In private sector the role of interest
• Poor labor management relations
• Incentive system for the private sector
The Textile Sector

• Traditionally lending sector

• Various strong incentive measure granted by GOP in late 1977
Industrial Finance
• IDBP is one of the three development banks operating in Pakistan's
banking and financial sector
• Pakistan Industrial Credit and Investment Corporation Limited (PICIC)
• (PICIC) was established in October 1957
• and NDFC
INSTITUTIONAL ASPECTS

• Ownership and Board

• In 1969
• In1974
• In FY81
Management and Staff
• Management
• Mr. Jamal Nasim
• Staff
• IDBP had a professional staff
• Training
Operating Policies
• IDBP’s ordinance of 1961was last amended
The National Development Finance
Corporation (NDFC)
• The National Development Finance Corporation (NDFC) Project in Pakistan was achieved.
The International Development Association (IDA) was successful in strengthening NDFC's
appraisal, supervision and economic analysis procedures. IDA's performance in getting
NDFC to increase long-term loans was not as successful as expected, mainly due to the
structural disincentive in term lending. IDA's objective of assisting NDFC to develop into a
sound financial institution capable of mobilizing domestic resources has been met as
NDFC has emerged as a mixed bank, which is highly regarded by its clients, the financial
community and the Government of Pakistan (GOP) IDA also expected NDFC to play a key
developmental role in carrying out studies, collecting data on public sector enterprises
and formulating policies affecting the public manufacturing sector for GOP. However,
NDFC was less successful in meeting these objectives due to resources constraints and
the rapidly changing socio-political factors during the implementation period. With the
benefits of hindsight, these objectives were relatively ambitious given the "infant" status
of NDFC at the time of the credit and unforeseen domestic changes in GOP policies.
NDFC's management has responded well to the changes in environment and has built
this project into a viable financial institution
Pakistan Industrial Credit & Investment
Corporation Ltd.
• Pakistan Industrial Credit & Investment Corporation Ltd. (PICIC) was
established in October 1957 by Pakistani & Foreign Investors with the
assistance of the World Bank. PICIC is a private sector development finance
institution with equity & asset base of US$ 143.45 million & US$ 681.17
million. PICIC is a pioneer development finance institution, which has
played a key role in the industrial development and creation of industrial
infrastructure in Pakistan. PICIC is a premier private sector development
finance institution with diversified loan portfolio focusing on industrial and
economic growth. PICIC's entity ratings is (long term: AA, short term: A1+).
•
Products and Services

• PICIC offers wide range of product & services viz: long term project
financing, leasing, syndication & consortium financing. PICIC also
offers working capital financing and playing a pivotal role in SME
financing too. To mobilize the deposits PICIC offers unique deposit
schemes & long term duration.
• Subsidiaries
• PICIC Commercial Bank Limited

Asset Management Company

Financial Management Services