http://www.dailytimes.com.pk/default.asp?page=2006\02\21\story_21-2-2006_pg7_27
Tuesday, February 21, 2006        

Liquidation of Islamic Investment Bank: PHC seeks opinion on revival plan

PESHAWAR: Peshawar High Court (PHC) on Monday directed the State Bank
of Pakistan (SBP), the federal government and the Security Exchange
Commission of Pakistan (SECP) to submit their comments on a revival
plan for the Islamic Investment Bank (IIB) until February 27.

Qismat International Pvt, a group of private companies, has shown
interest in buying the bank which the SECP had declared `dead'. A
single bench of the PHC, presided over by Justice Shah Jehan Khan
Yousufzai, heard the petition filed against the liquidation of IIB.

Hamid Farooq Durrani, the deputy attorney general (DAG), said that
Qismat International Pvt should first deposit Rs 600 million in the
bank and then consult the authorities concerned on its plan to revive
the bank. The court directed Qismat group to deposit Rs 600 million in
the bank's fixed deposit with the provision that it could get the
money back with interest if respondents in the case or the depositors
do not agree with the plan. 

The court also turned down a request by the National Accountability
Bureau that the sale of bank should be advertised on the grounds that
it would further delay the process, which would affect the depositors.

Qausain Faisal Mufti, representing the Qismat group, said the group
would deposit Rs 600 million as surety within a week and the court
fixed March 6 for the next hearing. The group's revival plan for the
IIB includes freezing the depositors money for a year, for which the
interest will be paid. The group has demanded 70 percent discount on
shares and an increase in its value from Rs 190 million to Rs 500
million in the market from SECP.

The IIB was registered in Peshawar in 1992 and has branches in
Peshawar, Mingora, Mardan, Hangu, Islamabad, Lahore and Karachi with
its central support office in Karachi. akhtar amin






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