ISLAMABAD, June 16: There has been a steady increase in the non-performing bank loans — from Rs208 billion to 279 billion — in last three years.

According to official figures, there has been no improvement in the repayment of loans, despite the measures taken by the government through National Accountability Bureau.

The figures have been placed before the supreme court by the State Bank of Pakistan to show that there was a culture of indiscipline in the repayment of loans.

The figure is also being used to show to the apex court, seized of petitions seeking reversal of Riba judgment, that an element of risk does exist in the extension of bank loans as the ratio of return of loans is only 75 per cent in Pakistan.

The amount of non-performing loans in the first part of 1998 stood at Rs208bn, constituting 25 per cent of the total loans.

In the second half of 1998, the figure of stuck-up loans came down to Rs198 billion to go up again in the first half of 1999 from Rs198 billion to Rs212 billion.

In the second half of 1999 the figure went up to Rs221 billion.

In 2000, the stuck-up loans registered an unprecedented increase from Rs221 billion to Rs282 billion, an increase of Rs61 billion in one year.

In 2001, there was a marginal decrease in the stuck-up loans from Rs282 billion to Rs 274 billion. In the first half of 2002, the loans stood at Rs279 billion.

The stuck-up loans constitute 25 per cent to 26 per cent of the total loans extended by banks in Pakistan.