Cabinet to approve extension in application for six months

MUSHTAQ GHUMMAN

ISLAMABAD: The Federal Cabinet, which is scheduled to meet on Tuesday (today), will approve extension in application of Pakistan Essential Services (Maintenance) Act, 1952 to all classes of employment under National Institutional Facilitation Technologies (NIFT) Pvt. Ltd for a period of six months to be effective from January 18, 2020, well informed sources told Business Recorder.

Finance Division (Internal Finance Wing) has approached Interior Ministry to move a summary to the federal cabinet.

The Ministry of Interior, in a summary to the federal cabinet has stated that NIFT Pvt Ltd has been incorporated as a company under Companies Ordinance 1984 in 1995 as a joint venture between a consortium of six banks which included Habib Bank Limited (HBL), Muslim Commercial Bank (MCB), United Bank Limited (UBL), National Bank of Pakistan (NBP), Allied Bank Limited (ABL) and First Women Bank Limited (FWBL) and some entrepreneurs from private sector.

The payment system and Electronic Fund Transfers System Act, 2007 was enacted by the Parliament and consequently a lincence agreement was signed between NIFT and State Bank of Pakistan - Banking Services Corporation (SBP-BSC) which is a subsidiary of the SBP in Karachi to provide banking clearing operation services. NIFT is key stakeholder in payment systems of Pakistan which is responsible for clearing of all paper based instructions including checks, pay orders, demand drafts, telegraph transfers etc.

The NIFT has processed 49.11 million financial instruments amounting to Rs 24.93 trillion in the first nine months which manifests that operations are extremely sensitive and important for the economy and any disruption in its operations may dilute public confidence in the payment system of the country. 95 per cent of NIFT employees are unionized staff and union leadership has been consistently demanding unreasonable privileges/ monetary benefits and threatening NIDT management through call for strikes if their demands were not met. On November 28, 2017, the workers union halted operations due to which work at NIFT was badly affected and countrywide clearing operations of paper based financial instructions came to halt.

In order to ensure uninterrupted operation of the organisation, Ministry of Interior has recommended extension in application of the Pakistan Essential Services (Maintenance) Act, 1952 to all classes of employment under NIFT for a further period of six months with immediate effect, under section-3 of the said Act.

The cabinet will also approve Dr Bahrawar Jan as Member National Accounts, Ayyaz -du-Din as Member Census and Surveys. The Board did not find any suitable candidate for Member Economic and Statistics and recommended for re-advertisement of the position.

Secretary Cabinet Division will submit a report to the Cabinet about appointments made by the previous government in violation of Supreme Court’s decision in Mustafa Impex case.

The ministers concerned will share their input about economic position of the country as well as Covid-19.

The appointment of Chief Executive Officer (CEO), Central Power Purchasing Agency-Guaranteed (CPPA-G) will also be considered by the cabinet. Last month, the cabinet deferred its decision on appointment of Abid Latif Lodhi as CEO, after some members raised suspicions on his credentials.