ISLAMABAD, June 9: The National Assembly was informed on Monday that bank loans amounting to Rs60 billion had been written off between 1999 and 2008.Finance Minister Syed Naveed Qamar said during the question-hour session that the amount included Rs46 billion obtained by 395,157 borrowers of up to Rs500,000. He said that the material containing particulars of such individuals was voluminous and the State Bank had sought one month for completing information. He said there were 2,739 cases of loans of over Rs500,000.

He replied in the negative when asked if there was any proposal to write off loans of poor farmers. “Presently there is no scheme to write off agricultural loans across the board,” he said.

The minister said that prices of cooking oil and ghee had registered an increase of 87 and 65 per cent, respectively, over the past three years, adding that the increase was a result of rising trend of palm oil prices in the international market.

Mr Qamar said the government did not give direct subsidy to companies for supplying edible oil and ghee to the Utility Stores Corporation (USC) at lower rates.

“The finance division is providing subsidy to the USC directly as per government decisions taken from time to time which ranges between Rs6 and Rs25 per kg,” the minister said, adding that the finance division had paid Rs1,030 million between July 2007 and March 2008.

He said there was no plan for an across-the-board subsidy on oil and ghee and that subsidy would be given to only poor segment of society.

In reply to a question, the finance minister conceded that liquefied petroleum gas (LPG) was being smuggled from Iran. He said that new customs stations had been set up along the Pakistan-Iran border to help genuine traders and discourage illegal trade.

Responding to another question, he said the exemption given in capital gains tax would remain in place for another two years.

He said the government had no immediate plan to float sovereign exchangeable bonds in the international market to raise finance. He said that once the international market condition improved, the government might consider issuing such bonds.