"We will have the result very soon and by the next week the mater would be resolved", he said in response to the members concern that the dispute may further impact the investment. The Senate committee was convened to take briefing from the Securities Exchange Commission of Pakistan (SECP).
The Minister said that appointment of MD is common problem in almost all the joint investment companies. "The appointments of MD in a constant problem in all the companies", he said. The minister also explained to the committee about the current dispute over appointment of MD in Pak-Brunai company for which the previous serving MD was given extension of three years on completion of tenure. He said that meanwhile the Prime Minister nominated another MD, which was not acceptable to the Brunai government. The minister said that the matter would not have any effect on the ordinary man because JIC is not dealing with clients but is involved in investment.
Chairman SECP, Muhammad Ali said that the financial regulation of the commercial banks fall under the purview of State Bank of Pakistan and as far as regulator issue was concerned; the SECP has already given its opinion. The meeting was informed that Joint Investment Company was established with the investment ratio of 50 percent each by the member countries and Managing Directors are appointed on rotation basis for three years' term.
He said that the four members' board of the company was equally represented by both the countries and MD was appointed from the members of board on rotation base by both the countries. Additional Secretary Ministry of Finance informed the committee that the Pakistan has decided to resolve the matter through diplomatic channels and proposed a meeting of Pak-Brunei Joint Ministerial Commission in next 20-25 days.