Written-off loans: Banks/DFIs told to submit records to Commission

The State Bank of Pakistan (SBP) on Friday directed all banks and development finance institutions (DFIs) to immediately submit the entire record of all written-off, remitted, reversed, and/or waived off loans/advances/finances of Rs 2.5 million and above for the period from 1971 to 1991, and of Rs 25 million and above from 1992 onward, to the Commission constituted by the Supreme Court of Pakistan in suo motu case No 26 of 2007 for its examination and consideration as to whether they were allowed without validity and justification, or because of political reasons, or considerations other than law or bona fide business considerations.
The SBP has also directed the banks/DFIs to ensure compliance of the above instructions and provide any and all assistance and co-operation in the work of the Commission and comply with any general or special instructions of the Commission, according to BPRD Circular No 08 of June 3, 2011. These instructions/directives have been issued by the State Bank on the advice of Supreme Court of Pakistan to the Presidents/Chief Executives of all banks/DFIs.