960411

Improved rules

to streamline

leasing cos working

LAHORE: The improvement in the leasing companies (Establishment and Regulation) rules will pave the way to streamline the functioning of leasing companies in Pakistan and to attract foreign investment here to ensure progress and prosperity of the country.

This was stated by Chairman Corporate Law Authority, Khalid Masood while inaugurating a one-day seminar on "The Draft Leasing Companies (Establishment and Regulation) Rules 1996 organised by Corporate Law Authority with the cooperation of Pakistan Industrial Leasing Corporation Limited at a local hotel on Thursday.

The Chairman said that rules of leasing companies were introduced in 1989 and their notification was issued in 1992 and now it had been decided that these rules should be reviewed in the light of latest developments.

Khalil Masood said that the draft rules had been prepared in accordance with the suggestions and proposals of various leasing companies already working business in the country keeping in view their problems.

He said that leasing was a sophisticated and technical business which required special training and skill for the benefit of the people. He said that it had also become a very established and important business throughout the country.

The Chairman said that leasing business which started some 100 years ago in Birmingham and later in 1922 it converted into a large scale in USA. He said that over 40 percent business in USA was through Leasing Companies while in Pakistan, it was at the beginning stages.

He said after the review of the rules, leasing company business would improve tremendous investment in the country. He said that CLA was always willing to share the dreams of the leasing companies with providing them best possible facilities and opportunities.

The Chairman said in the modern age, after the introduction of cross border lease, it had become very important that the rules and regulations of the leasing companies should be made according to the latest requirements.

He said that about six more mutual funds would be launched before December 1996 and hoped that with the improvement of the rules and regulations, more international leasing companies were expected to start their business in Pakistan.

Nadeem A. Sheikh an expert on leasing business speaking on the occasion said that it had become a very complex business which need specially trained personnel to run it successfully.

Appreciating the draft rules of CLA, he said that except some minor amendments, these new rules would be helpful in increasing the business in Pakistan.

Abdul Jabbar Qasim, another expert said that leasing rules should be simple, compatible, effective and practical, longer and reasonable life to ensure comprehensive results.

Rashid Ahmad, Managing Director of Pakistan Industrial Leasing Corporate Limited speaking on the occasion said that the draft rules and regulations of CLA would help to improve the business.

He said that about Rs 30 billion had been arranged through 29 leasing companies and 54 modarbas.-APP