The spokesman
of the Ministry of Finance strongly rebutted a report carried by a section of
the media on Friday, titled “Senate
panel threatens foreign banks with stern action”. The
report states that the three banks refused to appear before the Committee in an
ongoing investigation into issuance of EURO Bonds 2015.
The spokesman said that the Ministry of Finance in 2015, through competitive
bidding process, hired three banks i.e. Citi Bank, Deutsche Bank and Standard
Chartered Bank as Joint Lead Managers (JLMs) for issuance of Sovereign Bond in
international capital market. Subsequently, the three banks while acting as
Joint Lead Managers sold EURO bonds 2015 in international market through the
process of book building. The entire process of appointment of Joint
Lead Managers and sale of EURO bonds was conducted in a transparent and
competitive manner.
The
Senate Standing Committee on Finance Revenue and Economic Affairs had discussed
this matter earlier as well and had desired to also listen to the Joint Lead
Managers. Accordingly Senate Secretariat invited the three banks to
attend its meeting scheduled for November 9, 2017. The banks
informed that they had tendered their unavailability in writing due to non
availability of their Senior Management in the country.
The
representative of Finance Division, however, clarified that following the
Committee meeting held in September 2017, the matter came in discussion at the
highest level of Ministry and it was decided that the Ministry of Finance would
encourage the three banks to attend meeting. Subsequently, the representative
of Finance Division on November 1st, 2017 telephonically requested
the Secretary to the Standing Committee to invite three banks in order to
settle this matter once for all.
Regretfully
entire facts of the matter are being grossly misreported by one section of the
media. The impression that Ministry of Finance has withheld any facts is
completely wrong; and to say that the three banks refused to appear before the
Committee is also incorrect and misleading. From 23 foreign
commercial banks operating in the country at one time the number has now
reduced to only 5. Negative reporting of this sort would not only discourage
the international banks operating in Pakistan but would also send wrong signals
to the international banks/financial institutions who are thinking of starting
their business in the country.
The
Government of Pakistan is committed to encourage foreign investment and
participation of foreign banks in the economy of Pakistan, while maintaining
the highest standards of transparency and fair play, and such misleading
reporting is nothing but counterproductive.
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