ISLAMABAD, Aug 17: Government banks and financial institutions have written off loans totalling over Rs33 billion during the last three years. Minister of State for Finance Omar Ayub Khan in a written reply told the Senate on Friday that an amount of Rs5.66 billion was written off in 2003, Rs10.42 billion in 2004, Rs9.908 billion in 2005 and Rs7.15 billion in 2006.
According to information placed before the house, the industrial sector remained the major beneficiary, getting loans amounting to Rs25.82 billion written off. Loans to the tune of Rs3.21 billion and Rs2.83 billion obtained by trading and agricultural sectors were also written off during the period.
The total number of borrowers who got the favours was 11,220 in 2003, 17,869 in 2004, 45,249 in 2005 and 19,338 in 2006.
Eleven borrowers from the industrial sector received Rs4.37 billion as loans in 2003 while an amount of Rs8.8 billion outstanding against 32 borrowers from the sector was written off in 2004. Twenty three borrowers in 2005 and 34 in 2006 got waivers on loans of Rs9.96 billion and Rs7.15 billion respectively.
The number of borrowers from the trading sector who got their loans written off was 5,315 in 2003, 7,036 in 2004, 5,698 in 2005 and 3,910 in 2006. The number of borrowers from the agriculture sector who got their loans written off was 5,900 in 2003, 10,801 in 2004, 39,528 in 2005 and 15,394 in 2006.
Answering another question, he said the total number of sick industrial units in the four provinces was 2,035. Out of them 796 were in Punjab, 737 in the NWFP, 363 in Sindh and 139 in Balochistan.The house was informed that the committee for revival of sick industrial units had so far considered 388 cases out of which 196 units had been approved for revival through settlement and rescheduling of liabilities. The remaining 192 units were not approved for different reasons, including technical and financial non-viability. In some cases, sale of project assets through auction had already been approved by the court.
The Senate was told that the government provided an amount of Rs24.07 billion as subsidy and grant to various public sector entities and industries to meet their deficits during the financial year 2006-07. Pakistan Railways was given a grant of Rs6.429 billion to pick up a cash shortfall in operational expenditure. Pakistan Agricultural Supply and Services Corporation (Passco) was given a subsidy of Rs123.976 million to meet operational losses in disposal of wheat. The Trading Corporation of Pakistan got a subsidy of Rs262.287 million to pick up price differential between cost and sale price of sugar, flour, pulses and other food items. Fauji Fertilizer Bin Qasim Ltd was given Rs977.521 million as compensation instalment on account of losses incurred by the company for non-implementation of the fertilizer policy 1989 on part of the government.
GIK Institute, NWFP was given a grant of Rs80.244 million for servicing and repayment of foreign debt liability. Pakistan Dairy Development Company Ltd was given a grant of Rs100 million. Manufacturers and importers of phosphatic and potassic fertilizers were given a subsidy of Rs5.952 billion. The textile sector received a research and development subsidy of Rs9.58 billion on export of various textile products.
