Sub-committee of Sindh cabinet failed to review the matter of revival or liquidation of Sindh Provincial Co-operative Bank (SPCB) despite a passage of more than seven months, informed sources told Business Recorder here on Monday.
Sindh co-operation department had tabled this matter during the meeting of Sindh cabinet held in August 2011. The sub-committee of the cabinet consisted of Provincial Minister Syed Sardar Ahmed and Minister for Law and Prisons Ayaz Soomro with mandate to look into the matter and report the cabinet regarding the revival or liquidation of SPCB.
In a said summary, it was recommended by the Chairman of the Bank to the Chief Minister Syed Qaim Ali Shah that revive or liquidate the SPCB, sources said. Summary stated that: Sindh Provincial Co-operative Bank Ltd (SPCB) is a very old co-operative organisation established in the year of 1919, for arranging credit facilities to agriculture cooperative 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 the result of default in the repayment of loans by the members' societies, the SPCB also defaulted in repayment of FBC loans and as much the FBC had abruptly stopped its fresh finance since 1989 making SPCB non-operational, summary stated".
The summary also mentioned the details of loan payable by Sindh Provincial Co-operative Bank ltd. The summary mentioned the suggestions for approval of Chief Minister for revival of SPCB and to make it operational to play its role in providing credit facilities to small farmers and traders. Or, allowing golden handshake and absorption of 49 employees of the bank if it is to be liquidated. In this connection, Secretary Co-operation department Azhar Ali told Business Recorder that he is following the matter but no result has come out in this regard.