PAC orders forensic audit of $3billion PTI govt loan scheme

The Public Accounts Committee (PAC) has ordered a forensic audit of a $3 billion loan scheme launched by the Pakistan Tehreek-e-Insaaf (PTI) government.

According to 24NewsHD TV channel, PAC Chairman Noor Alam Khan issued the orders while presiding over a meeting

Noor questioned the State Bank regarding a letter he had written on April 19, seeking details of 620 beneficiaries

The meeting was told that it was a refinance scheme administered by the State Bank through commercial banks, and the details of loan distribution remained between the bank and the clients.

The State Bank explained that the scheme was launched in March 2020 a year after the COVID-19 outbreak, and no foreign currency was involved., Barjees Tahir raised the demand for the names of the beneficiaries and stressed the need for action against those who misused the funds.

The State Bank governor clarified that the interest rate had been revised to 5%, and the scheme primarily targeted the industrial and machinery sectors. More than 85% of the lending was facilitated by private banks, with 42% of the borrowers belonging to the textile sector. He also informed the committee that Rs. 394 billion had been repaid.

Noor Alam Khan pressed for information regarding the legal basis for the State Bank’s decision and insisted on the publication of the beneficiary list, recommending that the Ministry of Defence be included in the inquiry.

The State Bank governor suggested providing an in-camera briefing instead of publicising the names and the committee accepted the request.