'No news for SPCB revival in budget'

Though, PPP-led Sindh government has presented its fifth provincial budget, it could not bring any news for revival or liquidation of Sindh Provincial Co-operative Bank (SPCB). The sub committee of the Cabinet could not meet to review the matter despite passage of over nine months, Business Recorder learnt on Tuesday.
Sindh Finance Minister Syed Murad Ali Shah on Monday presented tax free but deficit budget of Rs 578 billion in Sindh Assembly but there was no good news for SPCB revival in the budget. However, the officials and employees of SPCB were hopeful that Sindh government would announce a bailout package for the revival of the co-operative bank, a high level official told Business Recorder.
Sindh Co-operation Department had tabled the matter during the meeting of provincial Cabinet held on August 2011. The sub-committee of Cabinet comprised of Minister Syed Sardar Ahmed and Minister for Law and Prisons Ayaz Soomro with a mandate to look into the matter and report to the Cabinet regarding the revival or liquidation of SPCB, sources said.
The bank authorities in a summary had recommended to Chief Minister Syed Qaim Ali Shah to revive or liquidate the SPCB, sources said. The copy of the summary, available with Business Recorder, stated that: SPCB is a very old co-operative organisation established in 1919, for arranging credit facilities to Agriculture Co-operative Societies.
The State Bank of Pakistan financed SPCB till 1966. However, after the establishment of Federal Bank for Co-operatives (FBC), the SPCB was declared as "Apex Bank" under the FBC Act 1977. The FBC had advanced loans against 100 percent guarantee of Sindh government.
"As a result of default in the repayment of loans by the member societies, the SPCB also defaulted in repayment of FBC loans and to the extent that the FBC had abruptly stopped its fresh finance since 1989 making SPCB non-operational, the summary stated."The summary mentioned the suggestions for approval of Chief Minister for revival of SPCB and to make it operational to play a role in providing credit facilities to small farmers and traders. Or, allowing golden handshake and absorption of 49 employees of the bank of it is to be liquidated.