PAC orders probe into PTI-era $3b lending

The Public Accounts Committee (PAC) ordered an investigation on Wednesday into the issuance of interest-free loans worth $3 billion to certain individuals and companies during the tenure of the previous Pakistan Tehreek-e-Insaf (PTI) government.

The committee, which met here with its chairman Noor Alam Khan in the chair, also sought the records of loan and the list of the borrowers from the State Bank of Pakistan (SBP).

While discussing the matter, Noor Alam Khan warned that if the finance ministry and SBP officials concerned did not provide the relevant information to the committee, he would personally lodged a police case against them.

During the meeting, the committee was informed that 600 people were given loans worth $3 billion during the PTI’s government at zero per cent interest rate. The committee was also informed that one company was give $1 billion loan, which later went bankrupt.

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“The [country’s] economy is in shambles and there is loot and plunder,” the chair observed. “Whoever is involved [in advancing such loans] whether the former prime minister or the then finance minister, it must reported to the committee,” he added.

He pointed out that just one company was provided $1 billion which went bankrupt. He said that PAC has recommended that the management of that company be arrested and their assets be seized by government.

PAC member Ramesh Kumar said that the funds were given to set up industry during the Covid pandemic with a view to boostign exports. Another PAC member, Barjees Tahir said that loans worth Rs850 billion were given in the PTI’s tenure.

Noor Alam Khan said that those loans were given during the tenures of then SBP governor, Reza Baqir, and the former finance minister. “People should know how the country was looted,” he added.

The committee then directed the SBP to provide the complete list of persons who took loan at zero per cent interest rate. The committee also sought a report from the Federal Investigation Agency (FIA) after Eidul Fitr.