PAC concerned over process of loans writing off
By Asim Hussain

ISLAMABAD—Public Accounts Committee on Tuesday expressing its concern over writing off of loans worth billions of rupees by monetary agencies and banks has asked the government to stop the process of looting of national exchequer in the name of writing off loans and has sought of details of recovery of loans cases sent to the National Accountability Bureau.
Session of the Public Accounts Committee was held at the Parliament House on Tuesday. The session chaired by Chairman PAC Malik Allah Yar, scrutinized the monetary irregularities during the year 2000-1 by the Finance Ministry and its subordinate departments. Auditor General told that former NDFC gave Zahoor Textile Mills Khanewal a loan of RS 410 million against rules and no legal conditions were fulfilled while giving the loan.
NDFC Affairs incharge told that 115 million rupees has not been distributed while the case of recovery of 76.2 million rupees is still pending with the Punjab High Court, whose hearing is on December 11.
Committee taking notice of writing off loans of billions of rupees of various defaulters said that major investors and industrialists loans are written off while small industrialists are arrested. Qurban Ali Shah said National Bank had written off loans worth Rs 18 billion and its details should be told on which grounds was such a large amount of loan was written off. Lakhani brothers also did not return loan worth RS 1.2 billion despite an agreement with NAB. However Incharge NDFC affairs told that this was not true Lakahani brothers are paying back loans as per conditions and have not backed out.
Chairman Malik Allah Yar said that it seems that the process of giving out loans is not transparent and all rules and regulations have been ignored, which is a disappointing state of affairs. Ali Akbar Venus said that lists of all those people who have obtained loans through fraud should be presented before the committee.
Rai Mansab said that the process of writing off loans should be stopped, which was opposed by secretary finance Tanvir Ali Agha who said that government continued to interfere in matters of monetary agencies firm 1972 till 2002 due to which situation was worsened. Now the monetary agencies have been handed over to private sector with no government interference. Moreover Every bank has its own board of director therefore PAC cannot order writing off of loans. Upon which committee members said that ZTBL and NBP should take measures that loans are not written off in future, Agha said.
The NDFC provided 99.76 million rupees to a person for establishing a single barrel short gun manufacturing unit but could not initiate work on the unit owing to bankruptcy and the amount increased to 368 million rupees, which is payable. The committee directed for provision of details of all the loans recovery cases that had been sent to NAB in the next meeting. The committee has also summoned Governor State Bank and presidents of National Bank and Agricultural Development Bank to explain the criteria of writing off loans through which the industrialists, landlords and investors loot national exchequer and go abroad.
Chaudhry Nisar Ali Khan said that loans recovery cases were pending since 1984 and the bureaucracy of ministry of finance with mutual collusion of finance departments refer only selected cases to NAB under vested interests. He said that the discrimination should be ended and a sub-committee should be formed that would review all the cases. The Auditor General also told that in 2001 RS 60 billion loss to the National Exchequer was witnessed due to the fluctuation in the Pakistani rupees on account of deteriorating economic conditions and the rupee fell by 22 percent.
Upon this PAC chairman summoned a incamera briefing in his chambers today (Wednesday) and sought an explanation of the conditions which led such a major loss and a detailed briefing on today’s economic situation.
Safdar Shakir, Rai Mansib Ali, Asia Azim, Sardar Ashiq Gopang, Abdul Ghafoor Haidri, Qurban Ali Shah, Riaz Fatiana, Ch Nisar Ali Kahn, Secretary Finance Tanvir Ali Agha and AGP Younis khan attended the PAC meeting.