Please refer to our BPD Circular No. 16 dated 29^th June, 2002 on the captioned subject. 

            The clause (5) of the above Circular i.e. “Conflict of Interest” has been amended/substituted as under:- 

“5.  CONFLICT OF INTEREST”

Ø      Is not a director of any other financial institution. The term financial institution will include any bank, investment finance company, non-banking finance company, venture capital company, housing finance company, leasing company or modaraba company. 

Ø      The conflict of interest shall not apply in the cases of:- 

       a.  Directors nominated by the Government. 

 b.  Managing Directors and other nominated officials of National Investment Trust (NIT) and Investment Corporation of Pakistan (ICP) till the privatization of these two financial institutions. 

 c.  Nominees of foreign and local investors, provided that they are appointed on the boards of dissimilar financial institutions. 

For the sake of clarity, the term “dissimilar” implies as an example, that one person appointed as director on the board of an investment bank may not again be appointed in any other investment bank.” 

All other instructions as contained in the above referred Circular shall remain unchanged. 

Kindly acknowledge receipt.