Govt waived goodbye to Rs1.09b in loans
The finance minister informed the National Assembly on Friday that the government waived Rs1.09 billion in loans last year. Among the beneficiaries are 13,396 investors and 60 agriculturists.
In a written reply during the house’s question hour, Finance Minister Dr Abdul Hafeez Sheikh also informed the house that around Rs 74.128 million in 2008, Rs 401.191 million in 2009 and Rs18.568 million in 2010 were recovered by the National Bank of Pakistan (NBP) against recoverable amounts of Rs 619.070 million, Rs 900.731 million and Rs186.904 million, respectively.
Financial irregularities and instances of fraud have considerably increased the number of non-performing loans in the NBP over the last few years, Federal Minister of State for Production Khawaja Sheraz told the house. Answering supplementary questions on behalf of the finance minister, Sheraz added that this increase in non-performing loans was a matter of great concern for the government.
(Read: An unravelling economy)
In a written reply to a question from MQM MNA Iqbal Muhammad Ali Khan, Hafeez Sheikh told the house that around 82 cases of fraud in the NBP were reported in 2008, 90 cases in 2009 and 60 cases in 2010. Out of these, disciplinary action has been taken in 69 cases from 2008, 55 from 2009 and 29 from 2010 so far.
The minister also said that in the three-year period around 21 officials were dismissed, 66 demoted, 217 downgraded in terms of salary and 705 warned and reprimanded for being involved in fraud and irregularities.
Replying to another written answer, the finance minister said that revenue collection from the cigarette industry was Rs59 billion in 2010-11 and Rs56.8 billion in 2009-10.
Answering a question about the blocking of about 8,000 Computerized National Identity Cards (CNIC) in Balochistan, Interior Minister Rehman Malik said that the CNICs were blocked on suspicion of fake information or forgery. He said that many of those with fake CNICs, particularly Afghans, also accounted for a lot of crime in Pakistan, and that solving the issues of fake CNIC would reduce this problem.
The house also found time for legislative processes on Friday, tabling The Women in Distress and Detention Fund (Amendment) Bill, 2010 which will allow transferring funds from the law and justice ministry to the human rights ministry for providing financial and legal assistance to women languishing in jails.
Contrary to the last-minute hitch that blocked a pro-women’s legislation a few days ago, no objection was raised from any corner of the house and was approved amidst jubilation by enthusiastic women lawmakers.
Another bill was also moved, again by Water and Power Minister Syed Naveed Qamar. The statement of objectives for The Private Power and Infrastructure Board (PPIB) Bill, 2010, says there is need for large-scale reforms for private sector participation in power generation and related infrastructure development.
It added that there has been a shift in emphasis from thermal to hydel and coal-based power generation, and private investors are already showing an interest in taking on such projects.
Published in The Express Tribune, October 15th, 2011.
COMMENTS (6)
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revenue collection from the cigarette industry was Rs59 billion in 2010-11 and Rs56.8 billion in 2009-10... WOW!
Examples of Financial Terrorism.
This was done, when we have been debt servicing our federal accounts !!!!, What did the SBP do on this, Just sit Idle, Where was PAC, settling scores ? Good Governance.
Hoorah !!!! Great writing off billions of loans !!! That is the main aim of Banks and their management. Ali Raza, ex-MD, and his cronies awarded themselves exceptional bonuses for accruing bad loans and writing off those that would help to save their skin. Rest of Pakistan can .... ...
Whose money is it anyway?