ISLAMABAD: Former finance minister Shaukat Tarin on Thursday dismissed allegations made by the Public Accounts Committee (PAC) chairman, who accused Mr Tarin of “dubious transactions” worth billions of dollars under a central bank scheme aimed at giving low-markup loans to businesses.

In a statement, Mr Tarin said the loans on nominal markup were part of post-Covid monetary stimulus measures taken by the previous government.

“It has come to my knowledge that the PAC Chairman Noor Alam Khan has accused me of being involved in ‘dubious transac-tions of $4 billion’ under the SBP-administered Temporary Economic Refinance Facility (TERF),” Mr Tarin said in the statement.

“SBP is an independent institution and operates multiple refina­nce facilities for businesses, including the Exports Finance Scheme (EFS) and the Long-Term Financing Facility (LTFF),” he said.

Former finance minister says businesses given low-markup loans as part of post-Covid stimulus

Mr Tarin said he expected the SBP to issue a detailed statement clarifying the objectives, merits and efficacy of the stimulus measures.

The PTI leader also clarified that he was appointed finance minister in April 2021 — a year after the State Bank of Pakistan (SBP) launched the refinance scheme in March 2020. Besides, the facility ended in March 2021, he said.

Therefore, the statement by the PAC chairman “is misleading and inappropriate”, Mr Tarin said.

His rebuttal came after the Public Accounts Committee, which oversees government spending, on Wednesday demanded a list of the 600 business people who were reportedly issued around $3bn loans from commercial banks at zero markups during the Covid-19 pandemic under the PTI government.

“Under which laws were these 600 individuals issued these loans?” the committee chairman asked during a meeting held at the Parliament House.

The committee was informed that banks offered these loans at concessionary rates during the pandemic.

The facility was aimed at encouraging investment during the economic slump caused by the spread of the coronavirus.

Published in Dawn, April 21st, 2023