The American action, officials in Washington have repeatedly said, is a part of the drive to ensure that Libyan-associated entities worldwide are not attempting to evade the UN sanctions and assist the Qadhafi regime. But Pakistani analysts have told Dawn that the ban indeed highlights the turbulent relations between Islamabad and Washington and that it would have a fall-out on Pakistan’s business.

Officially Pak- Libya is styled as a DFI with an authorized capital of Pakistan Rupees Four Billion. But its structure, involvement in energy and IT sectors and above all the fact that it had its genesis in the charismatic Bhutto era lend credence to the view that Pak-Libya is not just another joint venture. During as well as after Bhutto period, Pakistan and Libya have had commonality of interest in developing the ‘Islamic’ Bomb.

Pakistan army is aligned with the company through the old boy network. And it is reason enough to sit up and take notice of the company.  

Interestingly, Pakistan has several joint ventures with Gulf countries, like for instance, Oman. The Pak -Oman Investment Company Limited, set up in July 2001, is also a specialised Financial Institution with a total paid up capital of Pakistan Rupees 6.15 billion.
 
In a cover story way back in Jan 2001, Pakistan Economist said of Pak-Libya thus:   ‘Since its inception, Pak -Libya has made tangible contribution towards financing of industrial development in Pakistan. Financial assistance has since been provided to a number of projects pertaining to a cross section of important industrial sectors including Chemicals, Pharmaceuticals, Fertilizers, Engineering Goods, Oil & Gas, Energy, Financial Sector, Services, etc. The Company has so far made gross cumulative sanctions of Rs. 9.4 billion (including both local and foreign currency investments) to over 300 projects’. It is also credited with promoting IT education, and software development through Pakistan’s very first IT specific Venture Capital Fund in the name of PakVenCap.com Limited. Another area of operation is long term project finance to BMR (Balancing, Modernization and Replacement) plans of various companies.

This profile could have caused concern to the Americans, who have been blowing hot and cold for the past couple of months in a bid to brow beat Islamabad –Rawalpindi combine and make it fall in-line. Pak-Libya has come in handy to corner Pakistan since all its international financial transactions are in dollars and these are routed through New York.  Pakistan Foreign Office is naturally worried. Dawn quoted to a source close to the development to report that the Pakistan Foreign Office is negotiating with the Americans for reviewing the ban.

Most Pakistani analysts are convinced that the U.S., ban has nothing to do with the American concerns related to the economy of the Libyan regime, but would have a fallout on Pakistan`s business.

“It is indirectly a move to punish Pakistan as the ban would have a financial impact on Pakistan. Companies such as Pak-Libya Holding never mean that it is a Libyan company; such companies invest in Pakistan to portray to the world that Pakistan is an investor-friendly country. Such companies invest where they eye more profit”, Ahmar Bilal Sufi, an international lawyer, told a Pakistan daily.

Asia Times Online has an interesting take on Pak-Libya.  ‘After a three –day visit of president Asif Ali Zardari, Pakistan and Libya have agreed to re-energize the Pak-Libya Holding Company by establishing a joint investment company and forming subsidiaries for oil and gas, agriculture, banking and finance and infrastructure projects’, the on-line publication reported on May 21, 2009.

Zardari visited Tripoli as a part of his four-nation tour which took him to Britain, the US and France as well. The visit took place against the backdrop of massive army operations in Malakand and Swat areas of North-West Frontier Province (NWFP) that displaced at least two million people.

The Asia Times dispatch by Syed Fazl-e-Haider, a Quetta- based development analyst was under the headline: ‘Zardari’s gifts come with nuclear glow’.    It said: ‘Zardari’s overseas tour concluded with the approval of US$1.9 billion aid by the US House of Representatives, a UK commitment of 640 million pounds (US$989 million) over the next four years, and an offer from France of civilian nuclear technology after decades of embargo…..Libya and Pakistan agreed to establish a mechanism for cooperation in financial and banking sectors, including the setting up of a Pak-Libya bank… ‘.