950829

ECO Re-insurance Co

may start working

next year

KARACHI: Feroze Ahmed, Chairman, Pakistan Insurance Corporation (PIC), said here on Monday that Pakistan will earn Rs 500 million with the establishment of ECO Re-insurance Company in January, 1996.

In an interview the PIC Chairman said the ground has already been laid at the Tehran moot in May last.

He said now the process of implementation will be taking place.

Feroze said progress in this connection will be reviewed at the ECO Insurance's forthcoming meeting at Istanbul on Sept. 18 and 19 which will be attended, besides Pakistan, Iran and Turkey, by Afghanistan and the newly independent Central Asian states.

The 3-member ECO now enjoys the strength of about 10 countries, he added.

The PIC chief said that the forthcoming Istanbul moot is very significant as concrete shape will be given to the ECO Development Bank and the ECO Re-insurance Company.

Replying to a question, he said the format for ECO business is that Reinsurance has gone to Pakistan, the ECO Bank has been given to Turkey while Iran will be having shipping.

Karachi has been decided as the headquarters for the ECO Re-insurance Company and it will be housed at the newly constructed building at PIC Towers, he added.

He said the homework will be completed with the conclusion of the Istanbul moot.

Answering a question, Feroze said the Istanbul moot will take a final decision about the ECO Development Bank which will be providing finance to the ECO Re-insurance Company.

Giving the breakup, the PIC Chairman said 30 million US dollars will be contributed each by Pakistan, Iran and Turkey while 10 million dollars each will be coming through ECO Development Bank partners, i.e. Turkey, Iran and Pakistan.

Financially the ECO Re-insurance Company will be a "very sound" company and with its formal establishment, Pakistan will be joining the international community of re-insurance business, he added.

To another question, the PIC Chairman said Iran will also be having the responsibility of floating an ECO Airlines, besides the shipping company.

Talking about re-insurance business prospects, Feroze said the reinsurance business may spread to Middle East, Central Asian states, North Africa and other adjoining areas.

There was tremendous potential in re-insurance business he said, and added it was simply a question of its commencement.

Quoting the proverb - united we stand and divided we fall, Feroze said Pakistan, Turkey and Iran had joined hands for a noble cause and there was no reason why it should not succeed.

"I am very optimistic about its prospects," Feroze added.

Answering a question about Iran, the PIC Chairman said the Iranians had been "very cooperative and supportive".

"Pakistan, Turkey and Iran are working in unison and we are quite optimistic of scoring many more such successes," Feroze added.-APP