PAC seeks details of written-off loans since 1947

ISLAMABAD: The Public Accounts Committee (PAC) of the National assembly was informed Wednesday that the country’s foreign and domestic debt stood at Rs16.5 trillion of which Rs6 trillion is foreign debt.
The committee whose meeting was presided over by its chairman Syed Khursheed Shah also took notice of 600,000 ‘ghost’ pensioners and directed the finance ministry to present the record of pensions disbursed by the commercial banks and post offices.
Auditor General of Pakistan Rana Asad Amin told the committee that he has already ordered for the special audit of the pensions and will present the report to the committee.
On queries about ‘ghost’ pensioners the president of National Bank of Pakistan said the number of pensioners has reduced to 600,000 following the adoption of automated payment of pensions.
The PAC directed the finance ministry to formulate a transparent mechanism for pensions and submit it before the committee within 3 months. It also directed the finance ministry to present details of the total written-off bank loans since 1947.
The PAC examined the appropriate accounts of ministry of finance for the financial year 2009-10 in which the economic situation of the country came under discussion.
Secretary ministry of finance Dr Waqar Masood told the committee that the economy is showing positive signs as the fiscal deficit has come down from 8.2 percent to 5.3 percent in last two years and it is expected that by the end of the current fiscal year it will come further down to 4.3 percent.
On the issue of withholding tax, he told the committee that the main aim of imposing the withholding tax was to enhance the tax net rather than revenue collection. He said foreign remittances have increased to $18 billion, which will ease the balance of payments situation.
Dr Waqar Masood also revealed that the government is bringing anti-money laundering bill in which the issues of tax evasions have also been included.
He informed the PAC that the circular debt now stands at Rs260 billion.
While seeking details of the written-off loans since 1947 the PAC chairman observed that the banks always write off loans of those who own industries and big houses.
President NBP told the committee that the banks did not have powers to write off loans but only power to waive interest under specific situation.
PAC member Junaid Anwaar Chaudhry wanted to know whether the banks ever waived the mark-up of those who paid their loans but no one from the finance ministry or the president of NBL replied to his question.
Rana Asad Amin complained to the PAC that NBP’s reluctance to audit of its accounts is a grave violation of the 18th amendment, which empowers his department to auditing the accounts of all government departments.
Secretary finance agreed with Asad Amin.
Dr Waqar Masood told the committee that subsidies were being phased out and now these have been reduced to Rs18 billion from Rs400 billion and most of the subsidies were given in the electricity bills.
He said the Federal Board of Revenue faces shortfall of Rs200 billion in revenues due to decline in the petroleum prices.
Chairman PAC observed that the if the government had not raised the sales tax on the petroleum products the people would have got petrol at Rs60 per liter.