All written off loans to be recovered from defaulters: Senate
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ISLAMABAD: (APP) Lawmakers in Senate from both side of aisle on Tuesday called for effective legislation binding banks to provide names of those who had got their loans written off.
Coming hard on National Bank of Pakistan for not providing list of those who had obtained loans and later waived off to the House, they were of the views the written loans should be recovered from the defaulters.
Speaking on a motion regarding the names of persons/firms who obtained loans of Rs 5 million and above from the NBP in the last five years, Dr Jehanzeb Jamaldini said the bank has refused to provide report to the House in this regard.
He said influential people got hefty loans from banks and later they managed to waive off.
He said it has been happening for the last 50 years resulting heavy loss to the national exchequer. "If the State Bank of Pakistan is answerable to the Parliament then why NBP cannot provide list of the defaulters," he said.
Dr Jehanzeb requested the House to carry out detailed discussion on the on the issue.
He also called for providing list of all those who had got written off their loans. Saeedul Hassan said the name of all defaulters should not only provided to the House but also they should be exposed before the nation.
Nouman Wazir said the issue should be thoroughly discussed in the House. He said India recovered billion of rupees from those who accumulated back money.
He said that there should be proper legislation to recover written off loans. Usman Khan Kakar said such loans were used to favour blue eyed people. He said it was also a source of corruption and all such loans should be recovered.
Lt Gen (R) Abdul Qayyum while quoting SBP report said that loans worth Rs.403 billion were written off during 1997 to 2009.
He said both banks and the client were involved in waiving off of loans resulting loss to the national kitty.
He stressed the need for proper laws and strict measures to stop such practice.
Taj Haider said the issue should be referred to the standing committee on Finance for detailed deliberation. He said the SBP also regulates all private banks and there should be proper legislation to stop waiving off loans.
Hafiz Hamadullah said names of all those who had got waive off loans should be unearthed.
He said strong economy was prerequisite for strong country. Leader of the Opposition Barrister Aitzaz Ahsan said under law NBP was bound to provide list of all defaulters to the House.
Minister of Law and Justice Zahid Hamid clarified that no loan was waived off during the last five years. He said a detailed report containing names of all those who had got write off their loans had already submitted to the commission set up by the Apex court.
He said the government was not hiding any thing. Detailed briefing could be given to the lawmakers in in-camera session, he said.
He said the bank was also ready to provide all details to the members.
