04 January 2004	Sunday	11 Ziqa'ad 1424

KARACHI, Jan 3: The Privatization Commission will tell Habib Bank President Mr. Zakir Mahmood on Monday what he is supposed to do after the sale of the bank to the Aga Khan Fund for Economic Development (AKFED). But the sale of 51 per cent shares of the bank for Rs22.4 billion has come under fire from Habibians whose representatives are annoyed because they were not taken into confidence.

Sources close to PC told Dawn on Saturday that HBL chief would be briefed about the remaining procedure of the bank sell-off and how he is to handle bank affairs in the interim period. They say that PC officials will apprise Mr. Mahmood of the talks they have had with the buyers of the bank on key issues including employees policy.

It is not clear when Mr Mahmood will get such briefing direct from the buyers - but it is sure he will get one within few days.

So far it is business as usual at HBL. But Habibians say they are expecting a fast-paced paradigm shift in policy making and execution. "It is too early to say anything about all this," said Mr Mahmood when reached by Dawn over telephone.

"The buyers are supposed to make payment for 26 per cent shares within 45 days from getting the letter of acceptance," he said. "Then they can take over the bank management."

The government approved HBL sale on Thursday. The buyers have more than 40 days to make payment for 26 per cent shares, which comes to Rs11.4 billion before they can take over the bank. But sources close to PC say that the buyers are keen to make this payment much sooner and complete other formalities to take over the bank.

"It is a matter of days-not weeks," said an HBL executive. He said the buyers seem ready to submit to the State Bank the letter of acceptance they have got from the PC. "The SBP will then ask them to make payment for 26 per cent shares which they again seem ready to do within days." Then the central bank would inform HBL management of the change of ownership structure.

EXECUTIVES BRIEFED: HBL sources say that Mr. Zakir Mahmood briefed HBL's senior management on Wednesday on the privatization of the bank. He told them to pass on a word down the line that bank employees should not fear job-cuts-at least in the near future.

"It is a stated policy of the Privatization Commission that the employees of the units being privatized will have at least one-year job protection," Mr. Mahmood said in response to a Dawn query. So what will happen after that one year? This question is the most perplexing one for about 19000 HBL employees. "That I cannot say. I am in no position and authority to make any policy statements," Mr. Mahmood said.

HABIBIANS CONCERNED: Secretary General of Habib Bank Employees Federation Mr. Muhammad Ali Memon says "Habibians are annoyed because they were not taken into confidence before finalizing HBL deal."

"When it comes to privatizing a national asset like HBL three parties should be in picture-the government and the buyers and also the employees of the bank."

"But the government did not tell us what is going on and how and what could be done to get a better price for the bank and on better conditions," Memon complained in a telephone interview with Dawn.

"The lightening pace with which the bank has been sold casts doubt about the fairness of the deal," he said, referring to the clearance of HBL bid by the government within two days.

"The government should have fetched a much better price for HBL had it not been in a hurry."

Memon said HBL employees now want to know how secure their jobs are and how the buyers want to run the bank. "In the last five years about 15,000 HBL employees lost jobs and 500 branches closed down in the name of reforms. How many more jobs would go and branches shut down?"

Dawn inquiries made at HBL at different levels show that the Habibians are waiting for their new bosses amid an uneasy calm. They do not know who and how many will have to pack up and quit.

TOP MANAGEMENT: But top executives are taking it easy because they know they will be there. When Mr Zakir Mahmood was asked if the buyers would retain HBL senior management he said he could not say anything on his own.

But PC sources say that the buyers have stated in their statement of qualification that they would retain the existing management. Does this also mean Mr Mahmood will continue to head the bank. "I am in no position to comment on that," said Mr Mahmood.

But sources close to PC and State Bank say in all likelihood he will continue to lead the bank.

CHANGE EXPECTED: Habibians at all tiers of the bank say they are expecting a paradigm shift in policy making and execution after the privatization of the bank. "The bank would be stripped off its role as a service provider in the public sector," said a senior HBL official who refused to be named.

"We saw branches closing down during financial reforms and we will see much more of it now." But another executive had a rather optimistic view. "The bank under the new management would focus on rural banking as the new buyers have the resources for making the required investment," he said.

"Apart from policy making...you will see a paradigm shift in policy execution," said a mid-tier official.

"Word is taking round everywhere in Habib Bank that the days are over when you can dilly-delay your assignments. The buyers mean business."