SC warns legal action if loans not recovered

CJ Chaudhry warns that if SBP does not play its role in loan recovery, reference will be filed against defaulters.

Chief Justice of the Supreme Court (SC) Iftikhar Muhammad Chaudhry on Thursday warned that if the State Bank of Pakistan (SBP) does not play its role in recovery of loans, a reference will be filed against defaulters.

In a hearing of the suo motu case, the chief justice stated that the chairman of the National Accountability Bureau (NAB) will be asked to recover loans within three months, if SBP failed to do so.

The CJ also asked lawyers to cancel the licenses of banks involved in loan write-offs. He observed that loans worth billions of rupees have been written off by private and national banks.

Chief Justice Chaudhry said the SBP has not taken any significant steps to recover the loans and that the process of loan write-off must be stopped immediately.