ZTBL’s loan distribution process irks NA panel

ISLAMABAD:

The National Assembly Standing Committee on Finance has expressed displeasure over the process of distribution of loans by the Zarai Taraqiati Bank Ltd (ZTBL), saying that if agricultural loans are to be given under the Kamyab Pakistan Programme, the bank should be closed.

The standing committee met under the chairmanship of Faizullah Kamuka where PTI MNA Malik Ehsanullah Tiwana moved a calling-attention notice for the waiver of loans to small farmers in famine-hit areas.

ZTBL President Shehbaz Jamil said that the bank could not give the waiver due to financial constraints.

Jamil said, “The government announced a 10 per cent mark-up subsidy for farmers during coronavirus but has not yet transferred the amount to the bank.”

However, he said, they were providing facilities to farmers within their financial limit.

The finance ministry officials informed the committee that the government had decided to issue interest-free loans for agriculture under the Kamyab Pakistan Programme.

Committee Chairman Kamuka said, “The government should provide agricultural loans through ZTBL [and not the programme].”

ZTBL officials replied that the bank provides agricultural loans worth Rs181 billion.

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PPP MNA Nafisa Shah said, “Big businesses and white-collar people have always been given privileges in Pakistan.”

The finance ministry officials said that Kamyab Pakistan Programme for small farmers has been launched in Punjab and Sindh. “Initially, two districts of Sindh, Umerkot and Tharparkar have been included.”

This irked the committee chairman, who said: “If agricultural loans are to be given under the Kamyab Pakistan Programme then the bank should be closed.”

The committee sought details of loans given by the bank.

Further, the standing committee unanimously approved the Federal Government Property Management Authority Bill, 2021.

The finance ministry officials said that the government wants to create a centralised system for properties.

PML-N MNA Ayesha Ghaus Pasha said, “There is an urgent need for an authority for centralised data of properties.

MNA Ramesh Kumar said, “It is very important to take the opinion of entities owning more properties, including the railways.”

The finance ministry officials said, “The Board of Authority chairman shall be the finance minister while the vice chairman shall be elected by the government.”

Chairman Kamuka said the bill had already been discussed. The committee unanimously passed the Federal Government Property Management Authority Bill, 2021.

PTI MNA Sajida Begum presented the Microfinance Institutions (Amendment) Bill, 2021, saying that microfinance institutions did not provide loans to small and medium enterprises (SMEs).

The State Bank of Pakistan executive director informed the members that most of the banks have approved the SME policy. “Banks also provided loans and set up ramps and special desks.”

MNA Nafisa said, “The entire microfinance policy of this country needs to be reconsidered as microfinance banks provide loans to women and youth but their mark-up is very high.”

The committee called for a detailed briefing on the microfinance policy and also sought details of loans given under the microfinance schedule of all banks.

MQM-P MNA Osama Qadri drew the attention of the committee towards the use of cryptocurrency, saying that machines for buying and selling digital currency had been set up in more than 75 countries. “Why can’t we use digital currency when it is being used around the world?”

PTI MNA Jameel Ahmed Khan said, “Thirty thousand people are doing the cryptocurrency business in Pakistan, which has a $20 billion market.”

The SBP officials said that only the Pakistani rupee was legal in Pakistan and not cryptocurrency, adding that a warning was issued in this regard in 2018.

The committee summoned the experts in the next meeting for their opinion on the issue of cryptocurrency.

The committee members also discussed the Governance and Operations of Government-owned Institutions Bill, 2021. They suggested some amendments. The committee chairman said that the amendments would be approved later.