ISLAMABAD: The issue of waived-off loans on political basis cannot be overlooked neither would anyone be spared in this regard, Chief Justice of Pakistan Iftikhar Muhammad Chaudhry said on Friday.
The CJP made these observations while heading a three-member Supreme Court bench – consisting of Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday – which is hearing a suo motu case initiated on news reports regarding the waiving off of loans worth Rs 54 billion.
The bench directed all commercial banks to join hands with the State Bank of Pakistan (SBP) and devise a strategy to recover the waived-off loans. The court also directed the SBP to explain its position on the loans written off in the last two years, and inquired about the people who got their loans written off, particularly in the last two years.
The chief justice said the reports indicated that a majority of these loans had been written-off by the Zarai Taraqiati Bank Limited (ZTBL). Appearing on notice, SBP’s lawyer Syed Iqbal Haider informed the court that he did not have the latest figure of the written-off loans, but would provide it to the court later.
He, however, submitted a letter written by SBP Governor Shahid H Kardar. Kardar assured the court of his complete assistance for the recovery of the written-off loans. However, he said more loans were likely to be waived off due to the economic slump in the international market, declining growth rate of the domestic economy and the recent catastrophic floods in the country.
The court noted that it had summoned top 50 people who got their loans written off, but only 10 such people and companies mentioned in the SBP list appeared in court. A majority of those who appeared in court claimed that their loans were written off legally and on genuine grounds.
Salman Butt, lawyer for REDCO, insisted that their loans were written off under BDP Circular 29. He said they were ready to negotiate with the United Bank Ltd (UBL) from whom they had borrowed the money. Salman Akram Raja, lawyer for seven private banks, said they were ready to settle the waived-off loans amicably.
Asif Saigol, owner of Mohib Textile Mill, said although he had paid the loan in time, his mill was auctioned, and requested the court to decide the case in accordance with the law.
Barrister SM Baqir informed the court that Indus Sugar Mills got Rs 820 million written off in 2004, however, it regularly paid installments on the loan, taken from eight private banks until March 2003. The proceedings have been adjourned until December 7.
