Loan write-off case: Consensus developed to build two new dams: CJP

Chief Justice of Pakistan Mian Saqib Nisar announced on Saturday that there is a consensus among all stakeholders that two dams should be built with the money recovered from 222 companies whose loans worth billions of rupees had been written off illegally. He said this while hearing a suo motu case initiated in 2008 on media reports that the State Bank of Pakistan (SBP) had approved a loan write-off scheme worth Rs54 billion owed to commercial banks by 222 individuals and companies.
The CJP observed that the consensus was developed during a key meeting with experts and various stakeholders earlier this week. The amount recovered from the defaulters will be used to construct two new dams immediately, the CJP remarked.
Chief Justice Nisar stated that some of the defaulters have expressed willingness to pay 75 percent of the write-off loan amount, whereas those who do not return the amount will be sent to the banking courts.
"Water shortage is such a serious matter... I'll have some good news regarding this very soon," he added.
During the hearing, the top judge said several of the 222 companies have consented to return 75 percent of the outstanding loans as per a formula suggested by Justice Muneeb Akhtar. The Chief Justice said other companies involved in the case wish to contest the case further, have the option to go to the banking courts.
However, the Chief Justice warned if banking courts issue a verdict against the companies, they would have to pay the full amount of their loans. He further said the parties who failed to repay their loans can also go to jail for as long as one year.
At this point, several lawyers representing different companies named in the case urged the Chief Justice not to forward the issue to the banking courts. Justice Nisar then ordered the petitioners to submit written recommendations regarding how to proceed with the case.
He also ordered that a special bench be formed to decide if the case should be sent to the banking courts or be heard by the SC.
During previous hearings on the prevailing water crisis in the country, the Chief Justice observed that construction of dams is imperative for Pakistan's survival, and inquired about the measures being taken to resolve water issue.
During one such hearing regarding Kalabagh Dam issue, the top judge had remarked that unity among all the four provinces is important for resolving the crisis. All four brothers [provinces] should come together and make sacrifices for the construction of dams, he had observed. The hearing of the case was adjourned till July 04.