SC stays Sindh Bank’s proposed merger with Summit Bank

Top court has also sought reply in PIA privatisation case

KARACHI: The Supreme Court (SC) has stayed the proposed merger of Sindh Bank and Summit Bank.

A three-member bench, led by Chief Justice of Pakistan (CJP) Mian Saqib Nisar, also issued a notice to State Bank of Pakistan governor over the proposed merger, while also seeking the balance sheets of both banks. The chief justice said the banks would not merge without the court's permission.

Top court seeks reply in PIA privatisation

On the other hand, the SC also sought answers with regards to PIA’s privatisation. It sought details as to whether the airline’s profitable routes had been handed over to private airlines, especially airblue. The SC also inquired the intention behind the government’s move to privatise the national airline.

PIA chairman and the defence minister have been given a week’s time to submit their replies. The SC has also ordered to resolve the matter at the hearing in Islamabad on April 9, 2018. The government has been eager to privatise the loss-making national carrier, separating its core functions from the airline to lure prospective buyers.

The year 2004 was the last financial cycle PIA enjoyed a net profit, which amounted to Rs2.3 billion. Its share price at the end of Dec that year was Rs13.7. Since then, PIA’s accumulated losses have soared to reach Rs319.10 billion by the end of March 2017. At the same time, its share price has plummeted to Rs5.31.

Published in The Express Tribune, April 1^st, 2018.

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