SBP
UAE firm files Rs 74 Bn lawsuit against State Bank of Pakistan for 'unlawful actions': Reports
Islamabad/IBNS: A United Arab Emirates (UAE)-based trading and investment firm has filed a nearly Rs 74 billion suit for damages against the State Bank of Pakistan (SBP) and a private bank for allegedly freezing its bank accounts illegally nine years back, media reports said.
Energy Global International FZE filed the damages suit against the central bank on account of “unlawful” action of freezing the bank accounts and illegally converting the foreign currency account into a rupee account in December 2012, reports The Express Tribune.
A private commercial bank has also been made party to the suit, filed in the Sindh High Court (SHC), for not releasing the funds, according to the court application, reports the newspaper.
SHC has summoned representatives of the SBP and BankIslami to appear before the additional registrar of the court on February 15 next year to respond to the damages claim, showed the court documents, reports The Express Tribune.
The now defunct KASB Bank had originally operated the bank accounts.
After its merger with BankIslami in May 2015, all of its assets, liabilities and accounts were transferred to BankIslami.
Energy Global is incorporated under the laws of Sharjah, the UAE, but its investors are of Iranian origin, the newspaper reported.
“The action of the SBP was contrary to the Bilateral Investment Treaty and the circulars issued to give protection to foreign investors,” the court filing was quoted by the newspaper report.
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