P.R NO.182 Finance Minister hands over cheques to depositors of up to Rs.10 million of IIBL slamabad

Federal Minister for Finance, Senator Muhammad Ishaq Dar here on Sunday reiterated  his proposal to all political parties on charter of economy to ensure sustainable development and economic growth. He was addressing the cheque distribution ceremony to the deposit-holders of the defunct Innovative Investment Bank Limited (IIBL) at the SECP head office on Sunday.

Finance Minister Senator Ishaq Dar handed over cheques to the depositors of up to Rs.10 million of the IIBL, which amount to Rs 1.1 billion. It may be recalled that the Lahore High Court ordered the winding up of IIBL in May 2013 on a petition of SECP, because of serious financial irregularities and violations by the bank’s administration. With the distribution of cheques, 84% of individual depositors and 59% of charitable institutions stand fully repaid. In addition, 17 individuals and 18 trusts and charitable institutions have been partially paid.

Addressing the participants, the Federal Finance Minister, Senator Ishaq Dar highly appreciated official liquidators, the SECP team and said that the court decision and its successful implementation is a strong signal to rebuild investors’ confidence in state institutions. He appreciated liquidators initiative of recovery of written off loans and stated that this provided a good precedent for similar action in other cases, where loans had been written off without sufficient justification. He stated that those who have good financial standing and have benefited from loan write offs should be made to pay back the loans.

The Minister said that it was important to strengthen state institutions to bring transparency and rebuild investors’ confidence. The investors should have the confidence that the state institutions would come to their help and rescue, if something goes wrong.

Minister Dar said that with the joint efforts of all stakeholders  Pakistan is now an economically stable country. He said that with economic stability, Pakistan’s inclusion in the MSCI Emerging Market Index is only a matter of time and hoped that in its upcoming assessment of MSCI Emerging Market Index, Pakistan will be included in the emerging market index, which will boost country’s image, build investors’ confidence and increase foreign investments.

The Finance Minister said that Pakistan’s economic indicators are continually improving and showing economic stability.  He said that there has been cumulative growth of 56% in tax collection during the last three years. The fiscal deficit will close on 4.3 percent of GDP on June 30, which was 8.8 in 2013 whereas the SBP possesses highest ever foreign reserves of$16.5 billion with the total reserves at the highest level of US$21.3 billion.

The Finance minister stated  that in the wake of the Panama Leaks he had directed the FBR, SECP and State Bank to prepare a comprehensive plan and legislation to plug the loopholes to stop illegal  inflow and outflow of foreign exchange to/from the country and that work on revising the legal framework is also underway.

The SECP Chairman Zafar Hijazi said that system of corporate burials needs to be strengthened in Pakistan.  He said that the SECP is making efforts and introducing reforms to further systematize the companies’ winding up and liquidation procedures.