‘Loans of Rs 59.945bn written off during Musharraf’s rule’
Tuesday, June 10, 2008
Daily Times, Pakistan Zulfiqar Ghuman Link
* Finance and Revenue minister says govt hopes to collect more taxes by broadening tax net
ISLAMABAD: The National Assembly (NA) was informed on Monday that loans worth Rs 59.945 billion were written off during President Pervez Musharraf’s rule between 1999 and 2007.
Finance and Revenue Minister Syed Naveed Qamar informed the NA of this in response to a question from Mian Abdus Sattar. Responding to various supplementary questions, he said that these loans were written off under different circulars of the State Bank of Pakistan (SBP). Of these loans, Rs 46.877 billion were in excess of Rs 0.5 million, while the remaining Rs 13.967 billion were in excess of Rs 0.5 billion, he added.
“If any member thinks that the write-off was unjustified in any particular case, that case can be reconsidered by the government,” he said. The government introduces different schemes under certain circumstances to give relief to loan-takers but that could not become practice, he responded to questioning on the problems poor people encountered when they could not pay back the small amounts they borrowed.
Tax net: Qamar said that the government has decided to extend Capital Gains Tax Exemption for two more years but hoped that the government would be able to collect more taxes from the stock market by broadening the tax net. “At present there are 654 companies listed in the Karachi Stock Exchange,” he added.
Housing society: Separately, the adviser to the PM on Interior said that the Interior Ministry was trying to resolve the issue of Senate Housing Society, adding that it was not a registered housing scheme. “Since this is not a registered society, the ministry cannot do much about this. However, if there are complaints, they should come through the Federal Investigation Agency (FIA) or other relevant institutions and the ministry will take action,” he added.
He said he was not opposed to the constitution of a parliamentary committee to investigate the issue of the Parliamentary Enclave if it could lessen the suffering of the people affected by the housing scheme.
Full Version: Loans Of Rs 59.945bn Written Off During Musharraf’s Rule
It does not point out how the Moody's rating of banks which were about to go bankrupt were energized by the term of Gen. Musharaff .. in fact such was the turnaround that we got UBL sold to foreign investors !
These were the very same loans on which bank's finance cannot be accounted for .. yes that's why a clean slate had to be maintained to be able to project the bank stable !!
Jeez .. people have not a clue of financial management and they become journalist !
These were the very same loans on which bank's finance cannot be accounted for .. yes that's why a clean slate had to be maintained to be able to project the bank stable !!
Jeez .. people have not a clue of financial management and they become journalist !
QUOTE(must7 @ Jun 12 2008, 08:07 AM) 
It does not point out how the Moody's rating of banks which were about to go bankrupt were energized by the term of Gen. Musharaff .. in fact such was the turnaround that we got UBL sold to foreign investors !
These were the very same loans on which bank's finance cannot be accounted for .. yes that's why a clean slate had to be maintained to be able to project the bank stable !!
Jeez .. people have not a clue of financial management and they become journalist !
These were the very same loans on which bank's finance cannot be accounted for .. yes that's why a clean slate had to be maintained to be able to project the bank stable !!
Jeez .. people have not a clue of financial management and they become journalist !
Brother, where could read more (the real case) about these allegations on Musharraf Government for writing off of loans. (or any Thread here where this topic has been discussed as to why and to whom those loans were written off).
I think that Rs 60 billion debts written off during last 8 years is not a big figure. Banks occasionally have to write off bad debts and written off of around average Rs 7.5 billion debt a year is not a big deal. It all depends on economy size of the country. Pakistan economy is of around Rs 11000 billion (it was around Rs 3000 billion in 1999). Pakistan stock market capitalisation at its peak was Rs 4800 billions ... it was around Rs 200 billion in 1999, and Pakistan federal tax collection is of around Rs 1000 billion, that was Rs 308 billion in 1999.
What we have to see is that if debt was written off because of genuine reasons or due to corruption/favouritism. We should remember that 100s of billion rupee debts were written off in past (pre-Musharraf period), most of those written off debts were of political personalities and their cronies, when economy was 15 to 20 percent of present day economy.
What we have to see is that if debt was written off because of genuine reasons or due to corruption/favouritism. We should remember that 100s of billion rupee debts were written off in past (pre-Musharraf period), most of those written off debts were of political personalities and their cronies, when economy was 15 to 20 percent of present day economy.
Brother, where could read more (the real case) about these allegations on Musharraf Government for writing off of loans. (or any Thread here where this topic has been discussed as to why and to whom those loans were written off).
Zainabia .. while I don't know the details of it .. but i will tell you (cause a friend of mine took an industrial loan too ! changed his name to Malik ..... & ran away to UK !!) all were taken on bogus papers with industrial names. All present day political leaders were involved be it BB / Zardari & troupe, NS/Shahbaz Shareef with Chaudhri / Rana / Makhtoum brothers & troupe .. It was a feast for all in every govt. .. on the cumulative a$$es of the money deposited by common Pakistani's in the govt. banks.
It was a mess of epic details & of course the bank had to clear them so that they can show some stability in their balance of account. Everybody got benefitted and I am sure if today you will take up the matter hardly anybody's name will come up as they were loans given to companies / industries with name of uncle, cousins, far off relatives & employees being board members of the ruling elite of today.
Just for your info .. in the first term of BB & NS .. they use to put their remarks or recommendations on favourite applicants on "Post it" papers .. once approved by the working director .. these "post it's" were removed and thrown in the bin ! I know a person who burnt his fingers due to this "post it" system !
Zainabia .. while I don't know the details of it .. but i will tell you (cause a friend of mine took an industrial loan too ! changed his name to Malik ..... & ran away to UK !!) all were taken on bogus papers with industrial names. All present day political leaders were involved be it BB / Zardari & troupe, NS/Shahbaz Shareef with Chaudhri / Rana / Makhtoum brothers & troupe .. It was a feast for all in every govt. .. on the cumulative a$$es of the money deposited by common Pakistani's in the govt. banks.
It was a mess of epic details & of course the bank had to clear them so that they can show some stability in their balance of account. Everybody got benefitted and I am sure if today you will take up the matter hardly anybody's name will come up as they were loans given to companies / industries with name of uncle, cousins, far off relatives & employees being board members of the ruling elite of today.
Just for your info .. in the first term of BB & NS .. they use to put their remarks or recommendations on favourite applicants on "Post it" papers .. once approved by the working director .. these "post it's" were removed and thrown in the bin ! I know a person who burnt his fingers due to this "post it" system !
Who are the loans for? Does the economic survey cover this chapter (in detail)?
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