PAC asks State Bank governor for list of people given $3 billion loans by PTI govt

Public Accounts Committee (PAC) Chairman Noor Alam Khan Wednesday asked the State Bank governor for the list of 620 people who had been given $3 billion worth of business loans by the government of Pakistan Tehreek-e-Insaf (PTI), reported 24NewsHD TV channel.

The State Bank governor told the PAC meeting that the loans had been provided to the people at a five percent interest rate, rejecting the claim that they had been given interest-free loans for 10 years.

“We asked for the list of these people yesterday which was not provided,” the PAC chairman said.

“These people were given loans through commercial banks under the refinance scheme. The information [regarding the transaction of money] is confidential between the client and the bank,” the State Bank governor told the PAC meeting.

“The scheme was launched for a year only. Under the scheme, the transaction of the money was carried out in Pakistani currency. Moreover, the State Bank or the government has not provided any list to the commercial banks under the scheme,” the State Bank governor briefed the meeting.

“If a person defaults in this scheme, the loss will be the bank’s and not the government’s. The State Bank’s policy rate at the time of lending was seven percent. The money was given only to the industry, not to any person,” he added.

“674 companies had applied for loans under the scheme. 85 percent of loans in the scheme were given by private banks. 42 percent of loans were given to the textile sector while the rest was given to other industries for purchasing steel, tyres, machinery, etc.” he stated.

Pakistan People’s Party (PPP) leader Saleem Mandviwalla said that the State Bank governor had presented the scheme before the prime minister who approved the scheme for acclamation.

“Only machinery was imported under this scheme, and it was imported at a time when the industry was closed worldwide due to corona,” he said.

“All the companies took money from the State Bank, not the commercial banks. The names of all those who have taken loans at subsidised rates must be disclosed,” he demanded.

“A forensic audit of the scheme, launched for specific people, should be carried out. The State Bank had given the loans in dollars, not in Pakistani rupees. The State Bank’s record of issuing dollars is needed,” he stated.

“I submit the answer to you shortly,” the State Bank governor said. The PAC chairman asked the State Bank governor for the list of the people who had been given the loans.

Reporter: Tayyab Saif