WB acknowledges Pakistan's progress on structural reforms
The World Bank on Thursday acknowledged that a lot of progress has been made on the implementation of structural reforms in various sectors by Pakistan, stressing that there was a need to keep up the momentum to achieve the projected growth targets.
According to a statement received here form the Embassy of Pakistan in the United States, the acknowledgement was made during a meeting of Federal Minister for Finance and Revenue Shaukat Tarin with World Bank vice president for South Asian Region Hartwig Schafer along with his team at the Embassy of Pakistan, Washington DC.
The finance minister reiterated that the government was fully committed to implementing structural reforms, protecting social spending and boosting social safety nets to protect the vulnerable segments of the society.
He appreciated the pivotal role being played by the World Bank in strengthening governance and service delivery through institutional reforms in Pakistan over the years.
Among others, Federal Minister for Energy Hammad Azhar; Federal Minister for Economic Affairs
Division, Omar Ayub Khan along with their teams joined the meeting virtually. State Bank of Pakistan Governor Reza Baqir, Ambassador Asad Majeed Khan, the Finance Division secretary and senior officials also participated in the meeting, the statement added.
The Government has decided to allow an American firm, M/s Alico, to repatriate money of Metlife Alico after Commerce Ministry accepted its fault in interpretation of decision of the Economic Coordination Committee (ECC_ taken in 1993. well informed sources told Business Recorder.
Sharing the details, the sources said, Commerce Division apprised the Cabinet on October 5, 2021 that M/s Alico (USA) operated in Pakistan from 1951-1972. It later re-established a life insurance business in Pakistan in May 1994. MetLife purchased Alico (USA) in 2010 which held majority shares in Alico Pakistan. Subsequently, MetLife decided to sell its 81 percent shareholding in Alico Pakistan, the sale of which was enacted in two phases in 2014 and 2015.
At the time of sale, Alico Pakistan was a local company listed on the Karachi Exchange. Alico (USA) applied to the State Bank of
Pakistan (SBP) for permission to repatriate the proceeds of this sale. One quarter of the sale proceeds were repatriated after the transaction, but the SBP did not grant permission to repatriate the remaining three quarters of the proceeds (Rs 600 million) based on the declaration by the Finance Division on September 25, 1995 that the capital issued in insurance business as per Insurance Act was non-repatriable, a contention sourced to an interpretation of the Insurance Act of 1938, which had been repealed years ago.
In preparation for the sale, in 2013, MetLife counsel reached out to the Securities and Exchange Commission of Pakistan (SECP) and received written confirmation from the SECP that according to insurance governing laws there was no bar on repatriation of foreign investment made in locally listed companies. Additionally, SECP maintained that the matter of repatriation of proceeded of Alico (USA) from sale of shares in Alico Pakistan, acquired through initial investment and subsequently by issue of right shares, was to be decided by Ministry of Finance in consultation with State Bank of Pakistan, keeping in view the related investment policy.