The National Accountability Bureau (NAB) and the Auditor General of Pakistan (AGP) have jointly submitted a preliminary report to the Public Accounts Committee (PAC) regarding alleged preferential loans granted by the State Bank of Pakistan (SBP) to 628 individuals at remarkably low-interest rates during the previous regime.
The PAC, acting on this report, has directed the AGP to conduct a comprehensive audit of the State Bank's loan scheme, shedding light on a practice that has raised serious concerns about transparency and economic prudence.
According to NAB officials, the controversial loan scheme was initiated on March 17, 2020, by the then Governor of the State Bank. The scheme initially focused on the power sector and was introduced with an interest rate of 7 per cent. This rate was later reduced to a mere 5 per cent. Initially intended to span a single year, the scheme extended its reach to commercial banks, which also participated in disbursing loans. This scheme continued until June 30, 2023, leaving many questioning the sustainability of such a policy.

Several members of the PAC expressed their concerns during PAC hearings over the scheme. Senator Salim Mandvi strongly questioned the decision to disburse loans in foreign currency when the country was grappling with a financial downturn.
Senator Syed Hussain Tariq also criticized the loan scheme and expressed a surprise that the loans under this scheme were procured in dollars but returned in rupees.
Meanwhile, Senator Saifullah Abro directed his ire toward the appointment of the deputy governor, who later ascended to the position of governor, overseeing the implementation of the scheme. The senator demanded action against the SBP governor and recommended the immediate removal of him from the post.
On this occasion, PAC Chairman Noor Alam Khan underscored the urgency of investigating the loan scheme and said he knows some prominent figures are among the beneficiaries of this loan scheme. He said investigations were being held in this regard.
While Senator Mushahid Hussain Syed told the PAC meeting that he saw no evidence of malpractice within the scheme.
The PAC also took up the matter of the new petrol pumps in Punjab and questioned the Chairman of the Oil and Gas Regulatory Authority (OGRA) about the implementation of the orders issued on March 14 and July 14.
In response, the Chairman of OGRA clarified that while no restrictions had been imposed on the installation of new petrol pumps but new approvals were subject to a requirement of having at least 20 days of storage capacity. He went on to reveal that OGRA had sanctioned the installation of 800 new petrol pumps in the past year and further 116 petrol pumps have been approved now.
PAC Chairman Noor Alam Khan directed OGRA Chairman to give permissions for new pump installations in Punjab and Khyber Pakhtunkhwa (KP). He urged authorities not to stop the installation of the PSO petrol pumps.