A lawsuit has been filed against the State Bank of Pakistan (SBP) and Bank Islami by Energy Global, a UAE-based investment firm, for wrongfully freezing their bank accounts nine years ago.
Tribune reported that the accounts of the company were frozen in 2012 by the SBP. The lawsuit claimed that the accounts were frozen at the request of the Office of Foreign Asset Control, a branch of the US Department of the Treasury. The company, however, says that it was not under any sanctions from the UN or the US.
The company is claiming that the SBP’s decision violated the ‘Bilateral Investment Treaty and the circulars issued to give protection to foreign investors. In its petition, the company has asked the Sindh High Court (SHC) to declare the actions taken by the SBP as illegal and to unfreeze its account. The company further claims that it opened the bank account to operate in Japanese yen and euro but it was forcibly converted into a rupee account.
Energy Global has also claimed damages from the SBP. The company estimates that it had currency equivalent to Rs. 19.6 billion, in the account, at the time that the account was frozen. It further calculates that a profit of Rs. 33.4 billion would have been made on the Rs.19.6 billion in the last five years. The company has demanded a further Rs. 10.8 billion for the opportunities lost during the time that the accounts were frozen. A total of Rs. 73.7 billion has been claimed by the company in damages.
Tribune reported that the accounts of the company were frozen in 2012 by the SBP. The lawsuit claimed that the accounts were frozen at the request of the Office of Foreign Asset Control, a branch of the US Department of the Treasury. The company, however, says that it was not under any sanctions from the UN or the US.
The company is claiming that the SBP’s decision violated the ‘Bilateral Investment Treaty and the circulars issued to give protection to foreign investors. In its petition, the company has asked the Sindh High Court (SHC) to declare the actions taken by the SBP as illegal and to unfreeze its account. The company further claims that it opened the bank account to operate in Japanese yen and euro but it was forcibly converted into a rupee account.
Energy Global has also claimed damages from the SBP. The company estimates that it had currency equivalent to Rs. 19.6 billion, in the account, at the time that the account was frozen. It further calculates that a profit of Rs. 33.4 billion would have been made on the Rs.19.6 billion in the last five years. The company has demanded a further Rs. 10.8 billion for the opportunities lost during the time that the accounts were frozen. A total of Rs. 73.7 billion has been claimed by the company in damages.