The National Assembly Standing Committee on Finance and Revenue on Friday has directed the National Bank of Pakistan to present report regarding 9 billion rupees losses occurred in NBP Bangladesh branch in 30 days.
The National Assembly Standing Committee on Finance and Revenue, which met under the chair of MNA Omer Ayub Khan, discussed the issues related to National Bank of Pakistan (NBP). President NBP Iqbal Ashraf briefed the committee on functions of the bank.
The committee members showed serious concerns over the nine billion rupees scam that occurred in NBP Bangladesh branch. The committee members asked NBP to present the report in 30 days. It also asked why bank started this operation in Bangladesh. The committee also directed the Finance Ministry and NBP to present the list of defaulters of the National Bank in last 15 to 20 years. The committee also directed to present the details of properties that NBP had taken in its custody, who failed to repay their outstanding loans. The committee members also showed their reservations on non-provision of NBP loans in villages and far-flung areas, as National Bank of Pakistan mostly provides loans in the cities. Committee member Daniyal Aziz said that agricultural production is adversely affected due to the non-provision of loans in villages. Therefore, Pakistan has to heavily rely on India and other countries for agriculture products, he added. He asked why bank is reluctant to give loans in villages when interest rate is same in villages and cities. He added that State Bank of Pakistan every year fixed agriculture loans but National Bank of Pakistan did not do so. The committee asked the NBP officials to present detailed report on provision of loans in villages and cities.
Later, the committee constituted a sub committee under the chair of MNA Daniyal Aziz to review the agriculture loans provided in villages. Committee member Abdul Rasheed Godil said that banks did not provide loans to small farmers, as it provided loans to the landlords and traders. The officials of National Bank of Pakistan informed the committee that 90 percent branches of the bank are running into profit while only seven to eight branches are facing losses.