NA body reveals $3 bln lent to 600 entities on zero interest

ISLAMABAD – April 6 (ONLINE) National Assembly’s Standing Committee on Finance on Thursday disclosed that a loan worth 3 billion US dollars was granted to 600 entities on interest-free bases during the tenure of previous PTI-led government.

The committee, which met on Thursday at Parliament House under the chair of Qaiser Ahmad Sheikh, showed disgust over the unprecedented ‘favor’ given to these 600 entities even in the days of economic turmoil.

“I request [the authorities] that the list of these 600 entities be shared with honorable members of committee on immediate basis, as we represent the parliament,” committee member Birjees Tahir said.

Chairman committee told participants that the loans were granted during the tenure of previous government. The question is, he said, why the privileged are always favored?

Officials from State Bank of Pakistan (SBP) while briefing NA body on matter said the loans were given by commercial banks. They however rejected the claim of loans being granted on interest free basis. The officials requested the committee for an in-camera briefing to disclose the list of these 600 entities.

President of the Forex Association Malik Bostan, who appeared before committee, told that he had shared an idea of increasing foreign exchange reserves of country with the Finance Minister and his team.

Malik Bostan said his organization lends US currency from the overseas Pakistanis as per an agreement. The overseas Pakistanis deposit their dollars in commercial banks and the banks sign agreements with them for two years. As the agreement period concludes, these dollars are returned to their owners along with the surplus value added by the fluctuating value of Pakistani rupee against the US dollar.

Chairman committee while reacting to this said Bostan shared an interesting idea of increasing country’s foreign exchange reserves. Minister of State for Finance and Revenue Dr. Ayesha Ghaus Pasha said the idea had already been deliberated upon by her ministry.