Friday, December 24, 2010

Banks wrote off Rs74.38 bn loans in 08-09, NA told

ISLAMABAD: At a time when Pakistan’s economy is in shackles after accepting hard conditions of the donors for getting new loans and its borrowing from the State Bank of Pakistan (SBP) has gone to Rs281 billion till November this year, the government has presented a shocking revelation in the National Assembly that commercial and nationalised banks have written off Rs74.384 billion loans in the last two years of Prime Minister Yousuf Raza Gilani headed coalition government during the year 2008 and 2009.

The federal government in a single directive has written off this hard earned money of Pakistanis on the one hand, while on the other hand, it has put the whole system at the stake to impose flood surcharge, RGST and excise duty to generate additional revenue of Rs60 billion.In a written reply in the National Assembly on Thursday, Finance Minister Dr Abdul Hafeez Sheikh made the starling revelation of written-off loans worth Rs74.384 billion, while giving a written reply to a question asked by Tasneem Siddiqui.

It is to be mentioned here that the issue of written-off loans is subjudice. According to record of written-off loans presented in the National Assembly during the question hour session, the public sector banks have written-off loans worth Rs8.08 billion. The Zarai Taraqiati Bank Limited is top of the list with writing-off loans worth Rs3.44 billion, National Bank of Pakistan wrote off loans worth Rs 3.18 billion, SME Bank Limited wrote off Rs679.37 million loans, Industrial Development Bank Rs525.42 million, Pak Kuwait Investment Co Ltd Rs68.99 million, Saudi Pak Industrial and Agri Inv Co Rs65.59 million, The Bank of Punjab Rs57.58 million, Pak Libya Holding Company Limited Rs7.55 million, Pak Oman Investment Co Limited Rs2.82 million and First Women Bank Limited wrote off loans worth Rs2.46 million.

Foreign banks have written off loans of Rs29.98 billion. Albaraka Islamic Bank BSC (E.) has written off loans worth Rs7.61 million, Citibank NA Rs8.18 billion, The Royal Bank of Scotland Ltd Rs5.24 billion, Standard Chartered Bank Ltd Rs16.05 billion and HSBC Bank Middle East Ltd wrote off loans worth Rs486.14.

The private sector banks has written off the loans worth Rs36.31 billion during the year 20018-2009 that includes United Bank Limited, which has written off loans worth Rs12.51 billion, Habib Bank Limited Rs7.16 billion, NIB Bank Limited Rs4.87 billion, Allied Bank Limited Rs3.82 billion, MCB Bank Limited Rs3.62 billion, Askari Bank Limited Rs1.63 billion, Bank Alfalah Limited Rs1.03 billion, Silk Bank Limited Rs872.37 million, MyBank Limited Rs201.05 million, KASB Bank Limited Rs158.66 million, Atlas Bank Limited Rs136.54 million, Habib Metropolitan Bank Ltd Rs100.96 million, Samba Bank Limited Rs89.88 million, Soneri Bank Limited Rs40.69 million, Faysal Bank Limited Rs21.65 million, Bank Al Habib Limited Rs7.46 million and Meezan Bank Limited has written off loans worth Rs5.88 million.

In a reply to another question asked by Raja Muhammad Asad Khan regarding the total amount of loan obtained from State Bank of Pakistan by the government during the year 2009-10, the finance minister in a written reply stated that the government has obtained Rs17.08 billion.

He informed that the State Bank of Pakistan had printed new currency worth Rs153.75 billion (Rs153,750.00 million). According to details, 600 denomination of Rs5 value of Rs3 billion, 600 denomination of Rs 10 of a value of Rs 6 billion, 200 denomination of Rs20 of value of Rs4 billion, 225 denomination of Rs50 of a value of Rs11.25 billion, 75 denomination of Rs500 of a value of Rs37.50 billion and 92 denomination of Rs1000 of a value of Rs92 billion.

Cases have been filed over the past year against 166 tax defaulters who collectively owe a staggering Rs 30 billion to the Pakistani exchequer, a minister said. Finance Minister Abdul Hafeez Sheikh told the National Assembly on Thursday that the Federal Board of Revenue (FBR), has over the past year filed cases against 166 tax defaulters. They owe nearly Rs 30 billion to the national exchequer.

During 2009-10, the FBR issued notices to 114 defaulters for over Rs 10 billion. 52 taxpayers against whom the bureau has tax claims of Rs 18 billion have received stay orders from different appellate forums, Pakistani newspaper, Dawn reported on Friday.

FBR officials had recently told the Public Accounts Committee of the National Assembly that the bureau was stuck in litigation in superior courts against thousands of tax evaders who owed about Rs 100 billion.
The Supreme Court chief justice has set up a separate bench to hear tax related pending cases

1 comment:

  1. Jiye bhutto!

    Jiye zardari

    are the ppp jiayals happy now


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