LHC also wants details from SBP

LHC issues notice to governor SBP seeking names of people whose loans had been written off.

LAHORE: The Lahore High Court (LHC) issued a notice to the governor of State Bank of Pakistan (SBP) seeking the names of people whose loans had been written off in the last two years as well as the reasons behind the waiver.

The LHC chief justice (CJ) Khwaja Muhammad Sharif asked a deputy attorney general to submit the report before the court on or before October 12.

Before issuing the order, the CJ was informed that the same matter was pending before the Supreme Court (SC). However, the counsel for the petitioner submitted that no such matter was pending before the SC and there was no bar on adjudicating on the matter.

The order was issued in a petition filed by Imran Khan of Pakpattan Sharif through Advocate Noshab A. Khan.

The petitioner’s counsel submitted that Rs50.84 billion had been written off by banks during the last two years. In the last 40 years, loans amounting to Rs256 billion had been written off, added Khan. He said it must be ascertained whether the people and firms who got their loans written off had actually gone bankrupt.

The petitioner pointed out that a few years ago a man in Karachi had killed himself after being hounded by a recovery team for Rs250,000. He added that it was a reflection on society that defaulters of small loans were hunted down, while million-rupee loans of well-connected people were written off. He further prayed that the State Bank of Pakistan be directed to disclose the names and details of all such people.

Published in The Express Tribune, September 29^th, 2010.