$3bn loan at zero interest rate: NA panel asks SBP to submit list of 600 borrowers

ISLAMABAD: The National Assembly Standing Committee on Finance, Thursday, directed the State Bank of Pakistan (SBP) to submit details with names and amount of 600 people who were provided $3 billion loan at zero interest rate.

During the committee proceedings, the committee members also sought details about the names of 600 persons who were provided $3 billion at zero interest rate.

The representative of the SBP said that the facility was provided by commercial banks during corona. Commercial banks very thoughtfully provided loans to experienced people, he added.

He said that all details can be provided to the committee in an in-camera meeting.

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Under the Banking Companies Ordinance, credit information is confidential. However, the SBP would follow the directions of the Finance Committee, he maintained. The chairman of the committee wanted that the SBP should submit a list of loans and on what terms and conditions it was provided.

The chairman of the committee and members raised serious questions as to what is preventing the government from appointing president NBP, president ZTBL, and members of the Competition Commission of Pakistan (CCP). The minister said that process for the appointment of president ZTBL and NBP president is being expedited. She said that this is the prerogative of the government.

She admitted that these are governance-related issues but added that once the entire cycle for the appointment was completed which was subsequently re-advertised due to some issue.

The appointment of NBP president was re-advised and at this point in time the case is with the State Bank of Pakistan (SBP) for clearance under fit and proper criteria. She said that an assessment of fit and proper criteria is under process for the appointments of both the ZTBL and NBP presidents. She said that currently it is being run by the acting president.

With regard to the appointment of the members of the CCP, she said that a total of 190 applications were received and the selection committee has been constituted and the process would be completed as early as possible.

The chairman of the committee expressed serious concern over no appointment of NBP president, Zarai Taraqiati Development Bank, and CCP there is only one chairperson in the board of five members and four members have not been appointed.

On the issue of the pension of the ex-NBP employees, a senior official of the NBP bank informed the committee that as per their directives, first meeting with the representative of pensioners was held.

The pensioners’ representatives were informed that a decision to this effect would be taken by the Board of the bank and the pensioners agreed that the board has to resolve it.

The chairman of the committee stated that this matter is pending for many years and the court has also ruled in favour of the pensioners and the bank has filed a review.

Aisha Pasha stated that the pensions and National Saving Schemes (NSS) have been digitalised and if a pensioner wants it can get a cheque book or ATM card and they have to inform the national saving schemes that his profit should be transferred to the pension account and they are not required to visit the national saving center.

Minister of State for Finance Minister Dr Aisha Ghaus Pasha informed that the government is not considering any scheme to give one-time permission to the accountholders to deposit cash foreign currency in their bank accounts without asking the source of the foreign exchange.

“The IMF has strictly barred the government from announcing any amnesty scheme. The fund is extremely against such amnesty schemes. Therefore, the government is not considering any scheme for the accountholders”, she said.

Chairman Forex Dealers Associations Malik Boston said that the biggest problem of the country is dollars and stated that they came to help the government in this regard through an agreement as was done in 1998 after the country faced a similar challenge following nuclear tests.

He said that we are giving $400 million and could increase the amount to $1 billion besides providing dollars to the public. Pakistan is not getting the benefits of being calamity-hit area but so far only $800 million out of the total pledges made.

Copyright Business Recorder, 2023