APROPOS of Jamshid Kalam`s letter, `Let them default` (Oct 14), we would like to make a few observations.

Mr Kalam mentioned “Why does the government insist on getting poor old NIT to pump liquidity into the market?”

It looks like that the writer suggests that existing investors funds are being put at risk for the benefits of possible defaulters, which is not the case.

In fact, the funds of NIT are contributed by investors who have full confidence in the management of the NIT. The management of NIT does not utilise its funds for such purpose.

The NIT management takes its own decisions according to the need of the hour, so that maximum benefits from its investment may be derived for its investors. The financial results of the funds managed by NIT for the past years fully reflects that funds are being managed prudently.

We would also like to clarify that EMOF is a separate fund and similarly any new fund would be established as a separate entity so that the funds of ordinary NIT investors are not utilised for this purpose.

If the market improves due to the additional investment of the new funds, their benefit of such improvement would be accrued for the account of NIT`s general investors, whose funds are not being utilised for the present purpose under discussion.

NIT Management

Karachi