ISLAMABAD, Sept 17: President General Pervez Mushrraf on Monday re-organised and converted Industrial Development Bank of Pakistan (IDBP) into a public limited company through a presidential ordinance.

The ordinance to be named Industrial Development Bank of Pakistan (Re-organisation and Conversion) Ordinance, 2007 would come into effect retrospectively from July 29, 2007. Through this ordinance the Industrial Development Bank Ordinance 1961 has been repealed.

After the commencement of the ordinance, the federal government would establish a company to be known as the Industrial Development Bank Limited. The company will take over the business, functions, contracts, proceedings, undertakings, assets and liabilities of IDBP.

No stamp duty or any other charges shall be payable by the company under any law for the time being in force for the transfer and vesting of the assets, contracts, liabilities, proceedings or undertaking of IDBP to the company or any share or securities issued in favour of the shareholders or financiers of IDBP by the company.

The company will be deemed to be a banking company and shall apply to the State Bank of Pakistan for a licence for permitting to carry on the banking business.

After the registration of the company, the federal government would direct all the assets, contracts, liabilities, proceedings and undertakings of IDBP stand transferred to and vest in the company on the date specified therein on such terms and conditions as may be determined by the federal government in this behalf.All permanent employees and officers of IDBP, who were continuously in the service of IDBP for a period of one year or more immediately before the effective date shall stand transferred to and become the employee of the company. The terms and conditions applicable to the retired employees of IDBP shall continue to apply to such retired employees.

All proceedings by or against or relating to IDBP pending on the effective date before any court, tribunal, arbitrator or any other authority shall be continued prosecuted, defended, enforced and executed by or against the company in the same manner and to the same extent as might have been continued.

Notwithstanding the repeal of the said IDBP Ordinance, all guarantees given by the Government of Pakistan in favour of foreign and local institutions which extend loans to IDBP shall remain in force as though these guarantees were given on behalf of IDBP.

No court, tribunal, arbitrator or authority shall question or permit to be called in question, any transfer or order made anything done, or action taken or purported to be made done or taken under this ordinance.