ISLAMABAD, Nov 8: The Pakistan Sports Board (PSB) has asked the federal ministry of sports to review its decision of transferring employees’ pension funds amounting to Rs55 million to a UK-based bank due to its limited operation in the country.

Joint Secretary Anwar Khan, who also worked as acting federal secretary sports, on October 28 directed the PSB to keep the Rs55 million in the Barclays Bank at a profit rate of 13.20 per cent per annum for two years.

The management of the bank was asked by the ministry through a letter on September 27 to explain the procedure under which payment of monthly pension would be made to the PSB employees at different stations in the country.

The director general PSB, Syed Amir Hamza Gilani, in his letter to the Federal Secretary Sports Ashraf Khan on November 3 said placing of the pension funds with the Barclays Bank was a risky matter.

He said, “Nowadays the US and UK banks are facing financial meltdown and getting support from their respective governments to overcome the crisis. Some banks in the US have even been closed.”

Moreover, he added, the National Bank of Pakistan had offered higher interest rates than the British bank.

The PSB chief also quoted a Barclays official as saying that they had no experience in distribution of monthly pension to government employees and had operational branches in only five cities.

An official of PSB on condition of anonymity told Dawn that all the employees of the board had reservations on the decision of the ministry as it was taken at a time when the federal secretary sports was on an official visit to a foreign country.

“The amount of Rs55 million was safe in the state-owned bank but transferring it to a foreign bank is not a right move,” added the official.

He said the amount was balance of employees’ gratuity and provident fund but later it was converted into a pension fund by the executive committee of PSB in June this year.