Geo Pakistan June 2nd

Consensus on commission to probe into written off loans

Updated at: 1315 PST,  Thursday, June 02, 2011  ISLAMABAD: State Bank of Pakistan (SBP) on the directives of Supreme Court (SC) will issue a circular today (Thursday) to investigate into the loans written off over the past 40 years and also point out the responsible bankers in this regard, Geo News reported. SC bench under the chair of Chief Justice Iftikhar Muhammad Chaudhary heard the case of billions of loans waved off. SBP presented a draft circular before the bench. The court expressed concern on it, while Chief Justice asked how would the bank take action against the bankers for issuing huge loans on minor surety, adding that it is the job of an independent commission. It is pertinent to mention here that a commission headed by former Justice Jamshed Ali in this regard had already been constituted. The circular to investigate into the loans written off was discussed in the court. The SC also directed SBP to ensure, in the circular, that all the banks must cooperate the commission. The commission will hand over the probe report to the State Bank every month and all the process would be completed within six-month period.