The National Bank of Pakistan (NBP) has sought amendment in banking recovery laws, before launching President's Rozgar Scheme. According to documents available with Business Recorder, the NBP has submitted President's' Rozgar Scheme to the government for approval, but to discourage wilful defaults and to safeguard bank's interest, the Bank has sought some amendments in banking recovery laws.
The Ministry of Finance gave a detailed presentation on the proposals at a meeting presided over by President Pervez Musharraf.
To make the scheme a success, the bank said that loan disposal within a strict timetable of 30 days was essential and there should be no unconditional leave to defend. The decree of the tribunal should be final, conclusive, and only subject to a right of appeal to the Supreme Court.
The Bank also wants amendment in the banking recovery laws contained in the Financial Institutions Ordinance 2001, so as to permit summary attachment and sale of moveable and immovable assets of the guarantors including borrowers without first obtaining decree.
The NBP has offered a unique product of national importance, 'President's Rozgar Scheme'. The Scheme would provide loan for self-employment and would also offer soft term loans to individuals for setting up of community utility stores, community transport and community communication centres.
The scheme is a public-private partnership meant to increase economic activities, reduce unemployment and alleviate poverty at grass-roots level.