ISLAMABAD: The Ministry of Economic Affairs has opposed a proposed amendment in “The Islamic Development Bank (IsDB) Ordinance 1978”, saying that the government of Pakistan cannot assume the rule making authority through amendment to regulate the functions/ activities of the Bank, which is an international entity.
Pakistan is the 3rd largest beneficiary of the IsDB financing with total worth of $12.43 billion since its inception in 1975.
Two members of the National Assembly from the ruling Pakistan Tehreek-e-Insaf (PTI) has proposed amendment in Section 6 of the Islamic Development Bank Ordinance 1978. The objectives and reasons of the proposed amendments are to make rules with the objective to seek valuable participation of the people in rules-making process, meaningful exercise of authority by the Minister-in-Incharge to assume primary responsibility for the disposal of business pertaining to his portfolio including rule-making and efficient and effective parliamentary oversight relating to delegated legislation.
The response of the Economic Affairs, a copy of which is available with Business Recorder stated that The Ministry of Economic Affairs does not support the proposed amendment to the Islamic Development Bank ordinance 1978. The primary reason for this is that the said ordinance was promulgated to provide legal cover for the certain immunities and privileges which were granted to the bank and its staff in Pakistan in pursuance of international agreement for the establishment and operation of the Islamic Development Bank.
Now; therefore, at this point of time the government of Pakistan cannot assume the rule-making authority through amendment to regulate the functions/ activities of Islamic Development Bank which is an international entity, the response added.
It further stated that the Ministry of Economic Affairs does not support the introduction of the proposed amendment bill in the Islamic Development Ordinance 1978. The Standing Committee on Finance Revenue and Economic Affairs has also been requested not to entertain the proposed amendment in the Islamic Development Bank Ordinance 1978.
The ministry’s response further revealed that the Islamic Development Bank (IsDB) is an international financial institution, which was established in 1973 in pursuance of the declaration of intent issued by the Conference, if the finance ministers of the Muslim counties held in Jeddah in December 1973.
The Article of agreement of the bank was signed on 12th August 1974 and it stated its activities in April 1975.
The purpose of the bank is to foster the economic development and special progress of the member countries and Muslim communities individually and collectively in accordance with principle of Shariah (Islamic Law).
The government of Pakistan promulgated the Islamic Development Bank Ordinance, 1978 on February 22, 1978 and was made effective from 23rd April 1975.
At present, all 57 OIC countries are the members of the bank.
The total authorised capital of the Bank is ID 50 million (equivalent to $75 billion). Pakistan is the founding member of the Bank and has 128,559 (2.54 per cent) shares amounting to ID 1285.59 million (equivalent to $1928.38 million) (10th position).
Copyright Business Recorder, 2022
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