ISLAMABAD: Expressing satisfaction with the recovery from the latest tax amnesty scheme, Chief Justice of Pakistan Mian Saqib Nisar has noted that there was no money for imports or even for paying salaries and pensions, but after the amnesty scheme, the country has enough money to import goods and pay these dues.
The chief justice gave these remarks during the hearing of the loan write-offs case. The CJP said that money is required for purposes of foreign debt clearance as well as the construction of dams in the country.
He however clarified that money which has come in Pakistan through amnesty scheme will not be utilised for these purposes.
Meanwhile, the two-judge bench, comprising CJP Saqib Nisar and Justice Muneeb Akhtar has also sought a reply from 222 loan defaulters regarding its two options. The bench on Wednesday released a written order in this case, wherein it is stated that all the borrowers identified by the Judicial Commission be given an option to deposit with the court an amount equal to 75 per cent of the differential between the amount sanctioned and the amount recovered.
If the borrowers deposit this amount within a given time frame and in a manner to be fixed by the court, then no further proceedings will be taken against them,” says the order. The order further said that all the borrowers who do not avail of this option will have their cases referred to banking courts, which would reconsider the entire case within a specific time period.
“The banking court shall be entitled and bound to look into the purpose and position as may emerge in consequence of the application to Circular 29 that was issued by the State Bank of Pakistan in relation to written off loans. More particularly, this exercise will be carried out within the parameters laid down in section 8 (1) of the Financial Institutions Ordinance 2001”.
It said that onus shall lie on the borrower to establish affirmatively that the written off/waived loans/ finances advances did not come within the parameters of section 8 (1). The banking court will be at liberty issue to issue notices to the concerned financial institutions and the State Bank if deemed appropriate, but it shall not be bound to do so.
In case a borrower fails or refuses to appear before a banking court, it shall proceed against unilaterally and in such a situation, shall be entitled to assume the waived off amounts come within the parameters of section 8 (1). In the Banking Court concludes that any amount recoverable shall make an appropriate order which shall be deemed to be a decree of the court and shall be executable accordingly”
The order says that if the borrowers choose to go to banking courts, their properties and assets would be deemed attached with immediate effect. However, if a borrower that chooses to avail the second option within the stipulated period, they may be allowed to make an appropriate application to the banking court.
The court also noted that since the order of attachment may apply in terms of the orders of this court any disobedience or violation shall also be tantamount to contempt of court and concerned parties shall be held liable accordingly. The hearing was adjourned till July 17.