ZTBL waived off Rs21.5bn during last ten years

ISLAMABAD: The Senate was informed that Rs21.5 billion including Rs8.7 billion principal and Rs12.8 billion mark up were waived off or written of to 313,392 borrowers by the banks during last ten years (2006-07 to March 31, 2017).

Giving replies to the House on behalf of the Finance Minister, Khurram Dastgir Khan, Minister for Commerce informed the House that the amount of Rs21.5 billion includes Rs14.5 billion were waived or written-off by Zarai Taraqiati Bank Limited (ZTBL) during the same period.

Out of the total waivers, Rs2.13 billion were written-off under Prime Minister's Relief Package for war affected areas of Khyber Pakhtunkhwa (KPK)/Malakand and Federally Administered Tribal Areas (FATA) in 2009-10, he said.

He stated that in Balochistan, the amount of agriculture loans of Rs2.1 billion were waived or written-off to 14,477 farmers during last ten years, out of which Rs1.37 billion were waived or written off by ZTBL. This includes Rs1.4 billion (Rs0.531 billion Principal and Rs0.841 billion Mark-up) waived off against tubewells financing.

Khurram Dastgir said currently an amount of Rs2.9 billion is outstanding against 5,991 tube wells in Balochistan and the government is considering its settlement in the upcoming budget.

Answering a supplementary question, the minister said, the loans outstanding more than a year, would be adjusted. But, it would not be as a policy matter as if we shall do so, it becomes a moral hazard in financial terms.

Answering another question, the minister informed the House that during the last four years from 2013 to 2016, ZTBL has granted new loans amounting to Rs66,376.303 million to 269,889 borrowers.

Giving province-wise detail, he said, new loans granted during 2013 to 2016 include Rs519.025 million for farmers in Azad Kashmir, Rs453.673 million for Balochistan, Rs790.551 million for Gilgit-Baltistan, Rs3624.144 million for Khyber Pakhtunkhwa, Rs56,635.102 million for Punjab and Rs7353.807 million loans have been disbursed to farmers as agricultural loan.

During the last four years from 2013 to 2016, the bank has rolled over 21,691 loan cases amounting to Rs4,872.588 million including Rs35.021 million for farmers in Azad Kashmir, Rs91.887 million for Balochistan, Rs124.670 million for Gilgit-Baltistan, Rs553.191 million for Khyber Pakhtunkhwa, Rs2882.851 million for Punjab and Rs1184.968 million loans were rolled off for the farmers in Sindh province.