ISLAMABAD: The Supreme Court on Monday directed the State Bank of Pakistan (SBP) to expedite the recovery of loans written off on political bases.
Commercial banks have written off loans worth Rs 256 billion on political and other bases.
Chief Justice Iftikhar Muhammad Chaudhry, during the hearing of the case, remarked that the common man loses his assets if he does not pay back the loan, but influential people went free in case of defaulting.
He said the loans should be recovered as it was tax payers’ money, which was used for paying salaries and running the day to day business of the country.
A three-member bench is hearing a case in which the apex court took suo motu notice of all loans written off by commercial banks between 1971 and 2009, an amount that comes to over Rs256 billion over the 28-year period. While the amount of loans written off may sound like a lot, it is in fact equal to less than 4.6% of the total assets of the banking system as of April 2011.