SECP has taken over CSIBL in the interest of all stakeholders, a right move by SECP, but nothing has happened todate as far as repayment of funds of creditors and depositors are concerned. Surely, a seasoned banker has been placed by SECP to solve the problems of CSIBL, which had persisted when the previous sponsors were manning CSIBL.
Of late, what is being learnt is that Annual General Meeting is being held, creditors' meeting held to discuss mark up issues. Yet absolute silence prevails so far as merger or outright sale, or liquidation of CSIBL are concerned. CSIBL is not a going concern per se, and to operate CSIBL as a going concern, is not going to help all funding entities namely, depositors and creditors of CSIBL, who are too keen to get their funds back from CSIBL.
However, it is common knowledge that CSIBL has petty earning assets, while, CSIBL has huge monthly mark-up bills to pay to its creditors and depositors. So to continue to run CSIBL in current fashion, is going to put a bigger hole in CSIBL asset base.
Thus, SECP is earnestly requested to please induct additional individual or team with the sole purpose to merge, liquidate, auction CSIBL and to do this there are various names in the local financial markets viz, Mr Kassim Parekh, Mr Shaukat Tareen, BMA Capital, JS Capital, Investcap, etc.
Anyone of them or others having similar kind of experiences can be engaged with clear mandate to resolve CSIBL affairs with a given time frame, of say, two weeks, and this shall help SECP to achieve its object of amicably disposing of the CSIBL's hot issue it has in its hands.
All creditors and depositors will be relieved of CSIBL related tensions, and the country will continue to maintain its fine international financial posture of managing mismanaged issues of financial sector as and when issues like CSIBL arise.
Would the President and the Prime Minister be kind enough to direct all concerned to follow urgent course of action which quickly brings an end to misery being suffered by creditors and depositors of CSIBL. Prolonging or giving the management of CSIBL in the hands of government is creating and will continue to create real negative image of beaming financial market of Pakistan, for which the President and the Prime Minister have done a lot to improve financial standing of Pakistan, as is obvious from Pakistan's current Standard & Poor's rating, and recent arrival of large western banks who are too eager to enter Pakistan's financial market by way of acquiring local banks at premium prices.
It may be noted that the State Bank of Pakistan, under similar situations in the past, had acted so promptly, that creditors and depositors had never suffered. Plenty of cases in this regard can be cited. Hopefully, the above Suggestions would provide the needed guidance to all concerned to early resolve CSIBL matter.
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