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SBP submits lists of written off loan beneficiaries

October 20, 2010

 

loans, state bank pakistan, pakistan banks, pakistan supreme court, mills
The other list contained names of 17 business entities whose amounts were waived off under BPD-29 (Circular 29) of State Bank of Pakistan. - File Photo.

ISLAMABAD: Counsel for State Bank of Pakistan Syed Iqbal Haider submitted the lists containing particulars of beneficiaries of written off bank loans with the Supreme Court of Pakistan on Wednesday.

Two separate lists were submitted with the three-member bench headed by Chief Justice of Pakistan Iftikhar Muhammad Chaudhry seized with issue of Rs 256 billion written off loans.

The first list contained top 50 beneficiaries of written off loans including 29 mills, companies or industries not covered by Circular 29.

The list contained names like Eurogulf Enterprises, Younus Habib, West Pakistan Tank Terminal, Mercury Garments Industries, Siraj Steels Ltd, Spinning Machinery Co., Saad Cement Ltd, Pakistan National Textile, Mehr Dastagir Spinning Mills, Mohib Textile Mills, Redco Textiles, Chaudhry Cables, Abdullah S Al Rajhiest, Quality Steel Works, Mekran Fisheries, Kohinoor Looms, Aziz Spinning, Farooq Habib Textile, Northern Polythene, Firdous Spinning Mills, Balochistan Foundary Ltd, Tawakkal Group of Industries, Mian Muhammad Sugar Mills, Punjab Cooperative Board for Liquidation, Pakpattan Dairies, Adamjee Industries etc.

The total waived off loan amount by various banks to these business entities stood at Rs 47,109.58 million.

The other list contained names of 17 business entities whose amounts were waived off under BPD-29 (Circular 29) of State Bank of Pakistan.

They included Mercury Garments, Siraj Steels, Mehr Dastagir Spinning Mills, Redco Textiles, Chaudhry Cables, Reshi Textiles etc.

The amount under this category stood at Rs 15,555.93 million.

Under Circular 29, the banks were allowed to write off loans under two conditions i.e., revival of sick industries and recovery of bad loans due to security situation.

During the previous proceedings, the SBP counsel had apprised the court that since 1971 to 2009, an amount of Rs 256 billion had been written off by banks.

The same bench also allowed a separate plea filed by Barrister Zafrullah to become a party to the case.

The petitioner contended that banks were making profits at the cost of their customers.

The interest rate upon loaning facility had jumped to over 12 per cent due to which foreign investors were not coming here, he added.

On another plea about writing off Rs 82 million loans, a notice was also issued to Indus Sugar Mills. – APP