The government has decided to wind up Equity Participation Fund (EPF) meant to promote and accelerate growth of private sector small and medium industrial entrepreneurs, sources close to Secretary Finance told Business Recorder. The EFP was established on January 2, 1970 through an ordinance with a paid up capital of Rs 50 million which was subsequently increased to Rs 155 million.
The primary objective of establishing EPF was to foster and accelerate growth of small and medium sized industry in the private sector. The fund was managed and administrated by the Industrial Development Bank of Pakistan (IDBP) which is now under liquidation.
The cabinet, in its meeting on June 4, 2008 approved the winding up of EPF. The details for Cabinet's approval are as follows; i) As a first step the services of Chartered Accountant would be hired to prepare working papers on the winding up plan of the fund;(ii) the winding up plan would be placed before the Board for approval and then AGM clearance would be obtained;(iii) after AGM clearance the liquid assets of the fund would be encashed and proceeds thereof would be distributed among the shareholders in accordance with their holding ratio;(iv) after completion of all above actions, the matter would be referred to the government for repealing FPF Ordinance to wind up the institution.
The source said decisions of the Cabinet leading to winding up of EPF have been accomplished. "We have submitted a summary to the cabinet to repeal EPF Ordinance and a draft Bill to repeal the Ordinance 1970, duly vetted by the Ministry of Law and Justice will be introduced in the Parliament," said an official on condition of anonymity.