PAC disposes of $3b interest-free loan issue without order

Members oppose suggestions of sending the matter of loans provided to 628 people to NAB and the FIA

ISLAMABAD:

The Public Accounts Committee (PAC) of parliament disposed of the matter of interest-free loans of $3 billion provided to 628 people during the previous Pakistan Tehreek-e-Insaf government, without any action.

During a meeting with the committee Chairman Noor Alam Khan in the chair, a number of members opposed referring the matter to the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB) for investigation.

According to sources, the committee held an in-camera meeting, in which the State Bank of Pakistan (SBP) governor informed the members about the details of the $3 billion lending.

The sources said that the committee was informed only about the names of the borrowing companies. They added that loans were given to textile, sugar mills, chemical and automobile industries.

Also read: PAC orders forensic audit of $3b loans given in 2020

The PAC chairman suggested that the matter should be referred to NAB and the FIA. However, other committee members opposed the suggestions, saying that it would have a negative impact on the industrial sector. Later, the PAC disposed of the matter.

The meeting also reviewed the audit paragraphs of the communications ministry for fiscal year 2019-20. Audit officials informed the committee that the National Highway Authority (NHA) twice raised objections to the design of the Lahore-Sialkot Motorway.

The Frontier Works Organisation (FWO) informed the committee that complete details of the design of the highway were provided to the NHA. Under the agreement, they added, objections could be raised in 28 days.

They said that as there were no objections in that period, the FWO proceeded ahead with the work on the project. The FWO officials also told the committee that the work on the project was not complete yet.

The communications secretary said the design of the project had been changed but its cost had not been increased. Later, the committee settled the audit para on the matter.