It was all about banking. The good banking practices of the past, the bad banking practices which followed nationalization when the bank executives became richer and the depositors poorer, and the better banking after 1997 when the State Bank of Pakistan woke up and drove the banks which had non-performing loans of over Rs250 billion to make them save their souls and their cash.
Salahuddin Haider of the 21st Century Business Club (former VIP Business Club) is always on the lookout for men of achievement to honour and listen to their pearls of wisdom so that others could follow in their gainful footsteps. The man chosen to honour this time was Shaukat Tarin, Chairman of the Union Bank. While other banks, like the United Bank, are bought by foreigners, he has the distinction of taking over the branches of the Bank of America, the business of the American Express in Pakistan and finally the Emirates Bank in Pakistan. He did make an offer for the UBL but that was not substantial enough to fall through. Tarin’s experience in banking is vast. He has been heading the Citibank in Pakistan and then the ailing Habib Bank. He headed the Citibank in Thailand, and earlier in the Gulf region.
Introducing Tarin was Aziz Memon, the textile magnate, while Candyland’s Mifta Ismail played the master of ceremonies. Tarin spoke of the Habib Bank which was the model earlier for other banks in Pakistan, which was followed by the MCB and the United Bank. After the nationalization of banks in 1974, there was absolute chaos in the banks and an everlasting decay. Hardly any effort was made to mobilize deposits, while every six months before the half year’s accounts were furnished, there was some deft window dressing. Loans were given liberally, and when they were not paid up or serviced larger loans, inclusive of the interest were provided and, following further default, even larger loans. The result was that loan default exceeded Rs125 billion. Foreign banks too lost during the period because of heavy devaluation of the rupee. They were not repatriating their profits but their capital.
Things began turning around in the banks after 1997 when the State Bank intervened, in fact following the compulsion of the IMF and the World Bank. How did he manage the numerous unions of Habib Bank, he was asked. He explained that on their part, he and his officers followed the rules while seeking their entitlements, and he then gave 100 per cent increase to the workers to make up for the inflation and provide higher wages. The staff was pleased and the union lost its sting.
UAE festivities
Consul-General Abdullah Amir Al-Falasi of UAE is a popular diplomat in the city, and so is the country of seven emirates merged into the federation he represents. A large number of Pakistanis visit Dubai, have business connections there or have relations working there for long. Anyway, it is very near to Karachi and is a great shopping place, even without its annual shopping festival which draws crowds from the city.
Al Falasi was celebrating the 31st anniversary of the UAE in the city and that came in Ramazan. So he made it an Iftar party with a large attendance. Governor Mohammadmian Soomro was not there as he had gone to perform Umrah, and Makhdoom Amin Fahim, the PPP chief, had gone to Dubai to consult his supreme, Benazir Bhutto, on the formation of the Sindh cabinet which his party ultimately could not do. So, the Nazim of the city Niamatullah Khan represented the government, as he does at many national day parties. He seems to be pretty popular with the diplomats as the forerunner of the MMA in office as a Jamat-i-Islami leader.
The Arab consuls-general were in full strength at the dinner but the cake was cut jointly by Falasi and the British Deputy High Commissioner David Pearey, who stands out among the diplomats because of his height. In a way, it was appropriate he joined in cutting the cake as UAE was born after they had freed themselves of the control of Britain.
The Emirates Airline Chief Abdullah Nasir, was there in his Arab dress instead of the suit he is generally seen in. He couldn’t be recognized by most guests. He had to speak out to them to be recognized. The airline is expanding fast and has been contributing to charities here through its free tickets. Al Falasi is on his fourth diplomatic assignment in the city. Meanwhile, his consulate has been shifted to its sprawling new premises on Khayaban-i-Shamsheer. Construction of its varied facilities, including a gymnasium and sporting facilities, is yet to be completed.
Dr Farooq Sattar of the MQM was there answering questions on the formation of the Sindh government. Among the honorary consuls was Naheed Irshaduddin of Denmark, who is the lone woman consul in the city.
Bahrain’s National Day
Bahrain has long been more like Hong Kong in the Gulf. Modern, progressive and open to foreign influences and commercial contacts. It was outshining other Gulf cities until the fast-growing Dubai became its major challenger as a centre of international trade. Bahrain is now making progress politically too and has provided representation for women in its Assembly.
When the Bahraini Consul-General Jameel Abdul Wahab Abdul Salam celebrated its national day, he invited a large number of guests. Former federal law minister Shahida Jameel was there with her husband. She was inviting some of the guests for the wedding of their son Zahid. He too is a barrister like his mother and father, and part of the legal company.
When a guest with a long white beard, turban and white clothes arrived, he was respectfully received by the host and escorted to the dais. The guests were wondering who he was. Some said he was the federal religious affairs minister, while a few others said he was the provincial religious affairs minister. Anyway, he was to be a minister for just that day, summed up the guests as the next day the provincial cabinet was to be sworn in. But Moulana Wali Razi’s life as a minister lasted for a few more days as the cabinet was not sworn in the next day.
One guest there said that fallowing too many interim or caretaker cabinets, the country is having too many former caretaker ministers. Once in office and after enjoying the various free facilities and honours showered on them, they try to return to the government one way or another. As they say, this is a land of opportunities, in fact of too many opportunities for the dashing and enterprising.
Consul-General Abdul Salam was in the US before he came here, like his popular predecessor Mohammad Ebrahim, and moves around here a great deal. Young Arif Jatoi was here. He had missed the bus of the chief minister of Sindh very narrowly. He is to be given the portfolio of food and agriculture, which is an important assignment in the province.
While the consuls-general were in large numbers, missing from there was John Bauman of the US. The provincial police chief Kamal Shah had said there was a serious threat to the US diplomats, so Bauman withdrew himself for a few days from the public eye.
Saadia Rashid of the Hamdard was there with her husband Barrister Rashid. Kuwait Airways chief Waleed Ahmad Al Muhanna was there. However, Farooki, the new president of the SITE Association of Industry, was introducing himself to some of the guests. The PPP was well-represented there. Among its leaders were Naved Qamar, Khurshid Shah and Iqbal Haider.
Politicians all
Although he has joined the PPP and was hoping to become a senator with its help, Nafis Siddiqui wants to retain his relations with other party leaders in Sindh, particularly important leaders like former prime minister Ghulam Mustafa Jatoi. So, following his return to Karachi from Islamabad, where had been spending most of his time lately in the company of Makhdoom Amin Fahim, he held a dinner in honour of Jatoi and invited a number of PPP and other leaders. But Jatoi, who arrived rather late at the dinner, was not in a good mood initially. His son Arif was a candidate for chief ministership of Sindh and had been rejected by the PML(Q) and its associate parties. While those parties did not want to accept Dr Arab Ghulam Rahim, arguing he wasn’t acceptable to Pir Pagaro, they did not accept Arif saying he was young. But the candidate they chose in Ali Mohammad Mahr too is young and utterly inexperienced compared to the more competent Arif, who has been found to be an efficient organizer of activities for the young.
The strong contingent of PPP leaders there included Makhdoom Amin Fahim, president of the PPP Parliamentarians, Raza Rabbani Secretary General of PPP, Yusuf Talpur and his younger brother Ghani Talpur, who had won their MNA seats from Sindh. Nisar Khuhro, PPP’s Sindh parliamentary leader, Aftab Shahban Mirani, and Manzoor Wasan too were there.
Irfan Marwat, who won his PA seat from Mahmudabad which is predominantly inhabited by Pathans, was there. The son-in-law of the former President Ghulam Ishaq Khan has cultivated the constituency for long and won the seat. Although he was designated as minister without portfolio, rumours have it that he would ultimately be the home minister.
After Jatoi left the GDA meeting angrily, he was followed by a contingent of journalists, but they could not gain entry to Nafis Siddiqui’s dinner as he said that was a private dinner. The big question discussed in undertones there was, who among the PPP leaders who did not contest the National Assembly elections will gain entry to the Senate?
It was all about banking. The good banking practices of the past, the bad banking practices which followed nationalization when the bank executives became richer and the depositors poorer, and the better banking after 1997 when the State Bank of Pakistan woke up and drove the banks which had non-performing loans of over Rs250 billion to make them save their souls and their cash.
