Private banks collecting debts settlement: Ministry, NRSP submit replies before IHC

The Ministry of Finance and the National Rural Support Programme (NRSP) Friday submitted replies before the Islamabad High Court (IHC) regarding a case wherein the court has been asked to stop private banks from collecting debts settlement during lockdown.

A singe bench of the IHC Chief Justice Athar Minallah heard the case, wherein it had issued notices to secretary Finance, chairman National Disaster Management Authority (NDMA), governor State Bank of Pakistan and the NRSP.

The bench had also directed the SBP and the Ministry of Finance 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.

During the hearing, a joint secretary of the Finance Ministry and officials of the NRSP appeared before the court and submitted their replies.

The NRSP officials informed the court that their staffers did not harass the petitioners rather they had sent messages to their clients for deferment of the installments as per government guidelines.

Later, the IHC bench adjourned hearing in this matter till April 24 for further proceedings. A citizen, Rafiqur Rehman, wrote a letter to the IHC chief justice stating that he had obtained loan from the NRSP.

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

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

He pleaded that banks' staff after coming at people's doorsteps were harassing women due to delayed payment of debt. He requested the CJ for waiving off debt installments or suspension of installments in such a painful time.