Most loans written off in Musharrafs er

Most loans written off in Musharrafs er

ISLAMABAD: As Senate Chairman Raza Rabbani ruled against government institutions which refused to disclose names of beneficiaries before the Parliament, Jang Group’s months long investigation revealed that more than 80 percent loans were written off by the state-owned banks and private financial institutions in last 25 years in tenure of former military ruler Pervez Musharraf, bursting the myth of politicians being the most corrupt lot.Of estimated total Rs209 billion, one hundred and seventy six billion rupees (Rs176 billion) were waived off by state-run-banks and private banks from 1999 to 2008, showed official documents exclusively obtained by Geo News/The News/Daily Jang from the State Bank of Pakistan (SBP), Supreme Court of Pakistan (SCP) and other public and private financial institutions.Around 172 biggest defaulters, who got waived off their loans worth over Rs50 million each, included politicians, retired generals, businessmen, industrialists and agriculturalists.Estimated loans worth Rs22.823 billion waived off in three tenures of Pakistan Muslim League-Nawaz (PML-N) which ruled the country from 1991-1993, 1997-1999 and 2013 to onward, according to official documents accessed by this correspondent.Estimated Rs14.129 billion were waived off by commercial banks in three terms of Pakistan Peoples’ Party (PPP) which ruled the country from 1988-1990, 1993-1996 and 2008 to 2013.State-run financial institution’National Bank of Pakistan (NBP)’waived off estimated Rs32 billion from 1990 to 2015. Of these Rs32 billion, around Rs27 billion (80%) were written off in Musharraf’s regime.Of estimated Rs11 billion, over eight billion rupees (Rs8 billion) were waived off by another state-owned bank’Zarai Taraqiati Bank Limited (ZTBL)’from 1999 to 2008. Around 0.7 million borrowers either got waived off their principle amount worth estimated Rs99.197 billion during this period, markup amount worth Rs40.343 billion or in terms of miscellaneous cases worth Rs69.403 billion, documents further revealed.Around 5, 611 borrowers got their loans worth Rs27.3 billion waived off from different banks in 2008 and 3, 028 borrowers got written off their loans worth Rs25.2 billion in 2007.As many as 4, 018 borrowers got their loans worth Rs33.5 billion waived off in 2006’the year witnessed a record waiver in twelve months in country’s history.Three dozen commercial banks waived off Rs30.5 billion of 1, 108 borrowers in 2005, Rs21.5 billion loans of 1, 005 individuals in 2004, Rs9.3 billion of 718 borrowers in 2003, Rs14.7 loans of 787 customers waived off in 2002, Rs5.8 billion loans of 785 individuals in 2001, Rs3.3 billion loans of 424 customers in 2000 and 612 borrowers got off their loans worth Rs5.1 billion in 1999.Estimated Rs5.19 billion were written off by various banks in 2013, Rs4.518 billion in 2014, Rs9.815 billion and Rs3.3 billion this year while Rs11.3 billion were waived off in two terms of PML-N (1991-93 & 1996-1999).Estimated Rs9.1 billion were waived off in last government of PPP (2008 to 2013), Rs2 billion from 1993 to 1996 in second term while Rs3 billion were written off in PPP’s first regime started from 1988 to 1990.Around 912 borrowers got their loans waived off more than Rs50 million while over 20, 000 borrowers obtained benefits in terms of getting their loans written off worth less than Rs0.5 million with an estimated collective amount of Rs50 billion.The case of loans waived off was with the SCP since 2009 where judges observed: ‘We [judges] fail to understand why government was not interested in recovering loans which belong to public exchequer and this court took suo moto notice, constituted a commission which concluded that the loans were written off contrary to the law prevailing at the time.’Around 856 individuals got waived off their loans worth estimated Rs32 billion from state-run financial institution’NBP’from 1990 to 2015. Some 129 individuals got their loans waived off over Rs50 million each during this period.Estimated loans worth Rs4 billion of 129 individuals written off by NBP in three tenures (including the current one) of PML-N.Estimated loans worth Rs1 billion were waived off by NBP in three terms of PPP (1989-90, 1993-96 and 2008-2013). Some 18 individuals benefitted from it.NBP waived off loans worth Rs89 million in 2015, Rs303 million in 2014, Rs80 million in 2013, Rs224 million in 2012, Rs297 million in 2011, Rs472 million of 24 individuals in 2010, Rs639 million of 29 individuals in 2009, Rs2.5 billion of 68 individuals in 2008, Rs4.3 billion of 123 borrowers in 2007, Rs2.9 billion of 103 individuals in 2006 and Rs4.8 billion of 166 borrowers in 2005.Around 657 individuals got waived off loans worth Rs11 billion from ZTBL in 1990 to 2015. Some 43 individuals go their loans waived off more than Rs50 million each during this period.Loans worth estimated Rs8 billion were waived off in Musharraf’s era. Some 190 borrowers got waived off their loans worth Rs1.140 billion in PPP’s three tenures. Around Rs2.1 billion of around 203 borrowers were waived off in three tenures of PML-N.ZTBL administration waived off loans worth Rs196 million of 252 borrowers in 2015, Rs48 million of 51 individuals in 2014, Rs128 million of 47 borrowers in 2013, Rs213 million of 71 borrowers in 2012, Rs73 million of 87 borrowers in 2011, Rs11 million of 11 individuals in 2010 and Rs730 million of 55 borrowers were waived off in 2009.Geo News approached NBP, ZTBL, BoP and Khyber Bank for comments but they did not respond despite several reminders.Salman Shah, a key member of Musharraf team from 2004 to 2008 said it was a move to revive Pakistan’s economy. ‘Waiver of maximum loans in Musharraf’s era was an effort to revive economy of the country,’ he said.Economic expert, Sakib Sherani says, “there could be a number of reasons for the spike in loans write-offs during the Musharraf’s period.’ Loans written off during one period usually represent bad lending practices of an earlier period, he explained.’Another reason is associated with the creation of PML-Q during 2002-03. Musharraf had massive loans of ‘King’s party’ leaders written off from financial institutions such as NBP, NDFC and others to make them eligible to contest elections and as political bribes,” he said.Top 15 Borrowers Beneficiaries As many as top borrowers got their loans waived off which were later counted over one billion rupees each or bit less than it.Siraj Steels Limited, owned by Muhammad Qasim and others, got waived off loans worth Rs1.5 billion in 2006.Spinning Machinery Company Pakistan got waived off loans worth Rs1.4 billion. Pakistan National Textile Mills, owned by Agha Tajamrnal Hussain and others got waived their loans worth Rs1.2 billion in 2008.Mohib Textile Mills (Pvt) Ltd got waived off loans worth Rs1.2 billion from NBP in 2002 where Asif Saigol, Arif Saigol and others pursued case of loans with the said bank.Saadl Cement Limited got waived off Rs1.3 billion from NBP where Zaheer Mustafa Jaleel, Farrukh Waqaruddin Junaidi and others were directors of the said company in 2004.Quality Steel Works Limited, owned by Major General (Retd) Farhat Ali Khan Burkigot waived off loans worth Rs962 million in 2005. Kohinoor Looms Limited owned by Mian Javed Saigol and others got waived off loans worth Rs946 million in 2005.The NBP administration waived off loans worth Rs901 million of Qurel Cassette Limited, owned by Major General (Retd) Abdul Qayyum in 2004.The NBP administration waived loans worth Rs748 million of Metropolitan Steel Corporation run by H.N.Akhtar, Aslam Gadit and others in 2003. Borrower Company ‘First Tawakkal Modaraba’ got waived off Rs629 million in 2002 where Qadir Tawakkal and Refigure Tawakkal and others floated the request.TRANSTECH Pvt. Ltd, owned by Ather Maqbool and others got waived off its loans worth Rs403 million from ZTBL in 2005.Pakpattan Diaries Ltd, owned by Farooq Maneka, Gohar Maneka and others got its loans worth Rs468 million waived off from ZTBL in 2008.Multan Edible Oil, owned by Munawar Sindh, got waived off loans worth Rs355 million from ZTBL in 2008. Ravi Agri and Diary Products, owned by Mohammad Akram, Mst. Murad Begum, Muhammad Saleem and others got waived off loans worth Rs510 million from ZTBL in 2005.Debts of Foreign Companies Waived Off by NBPYahoo Sang Yul Non No Com Ltd. also got waived off Rs73.646 loans from NBP in 1995. VIU Wing Canst. Com. Ltd. also got its loans worth 134.5 million waived off from NBP in 1997.General Nile Delta Bux Co also got its loans worth Rs51.9 million from NBP in 1991. Shrimati Ltd. owned by Guria Chandan Ramchand and others got waived off loans worth Rs34.052 and NBP also waived off Rs1.6 million of Sun Rise International owned by M. J. Mohandas and others.Waiver by Provincial State-Owned BanksThe Bank of Punjab (BoP) waived off Rs1.5 billion of 123 borrowers in last ten years.More than Rs403 million loans of 22 borrowers in 2015, Rs77 million loans of 10 borrowers in 2014, Rs89 million of 15 borrowers in 2013, Rs489 million of 12 individuals in 2012, Rs85 million of three borrowers in 2011, Rs6 million of four individuals in 2010, Rs8 million of seven borrowers in 2009 and Rs15 million of nine borrowers were written off by the BoP in 2008.Some Rs331 million of 19 borrowers in 2007, Rs30 million of 10 individuals in 2006 and Rs28 million of 12 borrowers were waived off by the BoP.Similarly, Bank of Khyber waived off Rs691 million of 58 borrowers in last eight years. It waived off Rs161 million of 11 borrowers in 2015, Rs77 million of 11 borrowers in 2014, Rs219 million of 12 borrowers in 2013, Rs87 million of nine borrowers in 2012, Rs111 million of three borrowers in 2011, Rs18 million of eight borrowers in 2010, Rs14 million of one borrower in 2009 and Rs4 million of three borrowers were waived off in 2008.The Sindh Bank did not waive off any loans since its establishment in 2010. ‘Sindh Bank has not waived off /written off any loans from the banks inception date that is April 24, 2011 till present,’ said Saima Aziz, Vice President Product Development Sind Bank in Karachi.