ISLAMABAD (Web Desk) – Despite the Public Accounts Committee’s earlier directives to involve top agencies in a joint probe into the issue of $3 billion loans to various businesses given by the PTI government, State Bank Governor Jameel Ahmad showed his reluctance to provide the details publically and insisted on an in-camera meeting.
The development came on Wednesday when the PAC met for the second consecutive day to discuss the multibillion-dollar matter that became a debated issue after removing the PTI government through the no-confidence vote last year.
On Tuesday, the PAC had directed that the FIA, NAB, Auditor General of Pakistan, and Military Intelligence should investigate the scandal and fix the responsibility through a detailed audit.
The PTI government had given this $3bn loan through commercial banks to big textile, cement, tire and auto industries under the refinancing scheme at zero pc markup for ten years.
During Wednesday’s meeting, the committee members again demanded the list of 620 people in business. Still, they were told the move would breach the confidentiality agreement between the banks and their clients.
But the argument angered the lawmakers who pressed ahead with the call for sharing the names as PAC Chairman Noor Alam Khan reiterated that the inquiry was essential to determine whether any special favours were granted.
However, the central bank governor said the foreign currency wasn’t involved in the scheme, which had been revised to a 5pc markup rate. He added that the actual amount – Rs394bn – disbursed was in local currency – a claim challenged by the parliamentarians.
Jameel Ahmad also insisted that the government and the SBP did not do any risk sharing, and commercial banks lent to clients at their own risk. He said the interest rate was 9pc when the scheme was launched, which was later reduced to 7pc, adding that the scheme was used only to purchase machinery.
Some members even questioned whether the scheme’s purpose was fulfilled. At the same time, Senator Salim Mandviwala backed the earlier directives about a forensic audit, including how the funds were utilised.
After a lengthy debate and heated arguments, the PAC agreed to the proposal of the SBP governor and decided to hold an in-camera meeting.
