Alleviating the hardships of those who obtained loans: SBP, Ministry directed to submit report

The State Bank of Pakistan and the Ministry of Finance are directed to submit a report explaining whether measures have been taken to alleviate the hardships and difficulties faced by the citizens who have obtained loans from the micro-finance entities.

The Islamabad High Court (IHC) on Friday issued notices to the secretary Finance, chairman National Disaster Management Authority (NDMA), governor State Bank of Pakistan, and the National Rural Support Programme (NRSP), in a petition filed by a citizen to restrained private banks from collecting debts settlement during the lockdown.

The IHC Chief Justice, Athar Minallah, heard the case. During the hearing, the petitioner appeared before the court in person, and stated that he had obtained loan from the NRSP.

He added that because of the lockdown his business was suspended since several weeks. He further stated that in the prevailing exceptional circumstance it was not possible for him to pay the installments and several letters had been sent to various authorities but no response had been received as yet.

He asserted that despite the exceptional circumstances and lockdown, he was being harassed to pay his installments. He maintained that the prevailing circumstances were beyond his control and that his fundamental rights were being violated by forcing him to do what had become impossible to perform.

The IHC noted that the lockdown had indeed suspended all business activities. It, therefore, may have given rise to a situation, where the state owes a "duty of care" and "duty to rescue" towards those who have obtained loans from the micro-finance entities, such as the NRSP.

The order said that the questions raised in this petition involved fundamental rights of not only the petitioner but the general public as well. Keeping in view the importance of the matter, Umer Ijaz Gillani, advocate and Advocate Chaudhry Haseeb Muhammad, president Islamabad High Court Bar Association are appointed amicus curae.

It added, "The State Bank of Pakistan and the Ministry of Finance are directed to submit a report explaining whether measures have been taken to alleviate the hardships and difficulties faced by citizens who have obtained loans from the micro finance entities.

They shall also explain whether the State owes a "duty of care" and "duty to rescue" towards the small and medium enterprises during the lockdown period. If the answer is in the affirmative then what measures have been taken to discharge such a duty."

Justice Minallah also restrained the respondents from harassing the petitioner till the next date fixed on April 17.

The order said, "The secretary, Ministry of Finance is directed to nominate an authorised officer well conversant with the relief measures extended to small and medium enterprises and those who have obtained loans from micro-finance entities but are facing hardship in payment of installments due to the prevailing exceptional circumstances."