PAC orders probe into $3b interest-free loans

The Public Accounts Committee (PAC) on Tuesday ordered the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) to conduct an investigation into the distribution of $3 billion among 620 business entrepreneurs by the previous government.

Chairing a PAC meeting, Chairman Noor Alam Khan also directed the auditor general of Pakistan to conduct the forensic audit of the amount, ordering the State Bank governor and the finance secretary to submit the list of those 620 persons.

During the meeting, it transpired that aid received from financial institutions during the coronavirus epidemic was distributed among the 620 business entrepreneurs during the tenure of the previous Pakistan Tehreek-e-Insaf (PTI) government.

The PAC chairman told the meeting that the previous government had given away $3 billion interest-free loans to those industrialists under the Temporary Economic Refinance Facility (TERF).

Read: PAC orders probe into PTI-era $3b lending

Committee member Barjees Tahir said that it should be investigated where that money was invested. However, another committee member, Mohsin Aziz, replied that 3.2 million people got employment under the scheme and the exports rose by $4 billion.

The PAC ordered for a performance audit of those $3 billion, while the FIA and the NAB were asked to conduct an investigation.

Noor said that the chief of army staff and the defence secretary should write to the Inter-Services Intelligence (ISI) for investigating the matter.

The PAC chairman said that the finance ministry had been instructed on April 19 to disclose the names of the borrowers of the interest-free loans worth $3billion but the instructions had not been complied with.

Therefore, Noor summoned the finance secretary in the next PAC meeting, reinstructing the State Bank governor as well as the finance secretary to submit the list the beneficiaries within 24 hours.

During the meeting, the Power Division secretary told the committee that the circular debt of the power sector had risen Rs2,370 billion as of June.

Noor expressed concern over unannounced load shedding even during the Eid holidays.