Multi-agency probe sought into zero markup pandemic loans

ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday ordered a joint investigation by four major departments, including an intelligence agency, into the issue of $3 billion in zero markup loans given to approximately 620 individuals during the Covid-19 pandemic.

A heated exchange of words followed when PAC Chairman Noor Alam Khan directed the departments concerned, which included the Federal Investigation Agency (FIA), the Auditor General of Pakistan (AGP), the National Accountability Bureau (NAB), and Military Intelligence (MI), to investigate and disclose the names of over 600 individuals who allegedly benefitted from disbursement of the funds.

During the meeting, Mr Khan alleged that billions of dollars were distributed among certain industrialists.

However, bitter words were exchanged between Senator Mohsin Aziz and MNA Barjees Tahir when the former informed the body that the money was used for the well-being of the masses, creating 3.2 million jobs, generating $4bn in income, and ultimately benefiting the country.

Heated exchange witnessed as lawmakers argue whether loans were a bane or boon during Covid-19

“You must order the list, but also discuss the benefits to the economy after the loan was disbursed,” Senator Aziz said.

MNA Tahir retorted that the committee had the right to know how and where the foreign loan was invested.

Urging members not to turn the meeting into a marketplace, and after repeated taunting by Senator Mohsin Aziz, the chairman turned off the microphones of both members.

Members of the PAC had been demanding a list of the over 600 businesspersons to whom commercial banks issued around $3bn worth of loans at a zero markup rate for 10 years during the pandemic under the PTI government.

Twice in PAC meetings, MNA Tahir had demanded that the State Bank of Pakistan (SBP) present details of the 600 plus people who received these loans to the committee.

Similarly, Mr Khan had also asked, “Under which laws were these 600 individuals issued these loans?”

The PAC was informed that banks offered these loans at concessionary rates during the pandemic. The facility was aimed at encouraging investment during the economic slump caused by the spread of Covid-19.

The committee observed that the Ministry of Finance was instructed on April 19 to share the names of those who took loans of $3bn without interest. The committee expressed displeasure that the Ministry of Finance and the SBP had not yet provided this list.

Regarding the issue of increased and unannounced load shedding, the chairman of the PAC expressed concern and said, “I have also spent Eid at grid stations.” He objected to the increase in salaries of officers while the people continued to suffer from indiscriminate power outages.

Noor Alam Khan observed that numerous inquiries had been taking place in the Power Division’s institutions for two years, but all in vain without fixing responsibilities. The meeting observed that irregularities worth Rs9.2bn had been identified in eight incidents of corruption. The PAC handed over the investigation of the eight audit paragraphs of the Energy Division, worth Rs9.2bn, to the FIA.

In response, Power Division Secretary Rashid Mehmood informed the members that the circular debt of the power sector had exceeded Rs2.37 trillion. The energy secretary of the Power Division had no objection to the investigation by the FIA, the Power Division secretary said.

However, he requested one week to look into the ongoing inquiries. The committee obliged, but added that it was not hopeful of any outcome.