DERA GHAZI KHAN, May 16: The Khushali Bank of Pakistan has failed to ameliorate the lot of the poverty-stricken people in spite of dispensing micro loans worth millions of rupees in Dera Ghazi Khan and Rajanpur districts.

The grant allocated to the bank for development activities could also not be utilized. The first branch of the bank was established in August 2000 in Dera Ghazi Khan. It has dispensed Rs200 million so far in Dera Ghazi Khan to at least 5,000 borrowers - 2,000 women and 3,000 men.

Unnecessary and consecutive changes in the process of granting loan, high rate of interest (20 per cent), lack of social mobilization regarding utilization of loans are the major factors which are taking the target beneficiaries away.

Sources told Dawn that number of loan defaulters is on the rise in Dera Ghazi Khan. They claimed that 70 per cent branches of the bank are suffering losses but the authorities never expressed concern over the situation.

One borrower told this correspondent that he would never again obtain loan from the bank because of the high rate of mark up. "Lack of social help and proper guidance can not improve the life of needy people. The loan policies of the bank did not liberate the people from the clutches of poverty."

The bank was allocated a grant of $15 million at the time of its establishment. The basic purpose was to provide infrastructure to the borrowers' community for the establishment of robust economic activity through small loans.

The bank was to provide 80 per cent of the cost of any development project while the rest was to be contributed by the borrowers community. The local authorities of the bank were reluctant to comment on the situation when contacted.

The Khushali Bank of Pakistan failed to emulate the Gramin Bank of Bangladesh which successfully help the poor farmers and women folk there with the concept of social development and savings. The Khushali Bank, it may be added, was set up on the pattern of the Gramin Bank.

LAUNCHED: The book 'Sijh Da Seena' comprising Seraiki poetry and written by late Nawabzada Sarwar Karbalai was launched on the eve of a two-day Sarwar Seraiki Jhoke mela here on Sunday. The mela was started on Saturday near Daat Wali Pul. The late poet's admirers Dr Afzal Dhandla and Ghulam Hur published his book posthumously.