Who Owns Pakistan - Yimg
Who Owns Pakistan - Yimg
Who Owns Pakistan - Yimg
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Habib Bank Gujranwala - The Bank that Gave Non-<br />
Repayable Loans<br />
Habib Bank Gujranwala was a cow that was milked by every big industrialist<br />
worth his name. The branch seems to have a banner sticking out of its window "<br />
Applications for non-repayable loans received here " and dished out bad loans<br />
amounting to Rs 2,793 millions. The beneficiaries included Karim Group (six<br />
loans) worth Rs 339 millions, Dost Mohammad Textile Mills ( Farooq A Sheikh)<br />
Rs 261 millions, Bela Chemicals (Basharat Elahi, brother-in-law of President Zia<br />
ul Haq) Rs 230 millions, Fazalsons Rs 274.69 millions, an individual Abdullah<br />
Rajai Rs 233 million, Valika Rs 103 millions, Habib group Rs 41.48 million, Arag<br />
Industries Rs 30.9 million, Hyesons Rs 26.56 millions, Fancy Rs 22 million,<br />
Dadabhoy Rs 16.54 millions and Bawany Rs 14.43 millions.<br />
How industrialists living in Karachi had resorted to credit sanctioned by Habib<br />
Bank Gujranwala speaks about the professional integrity of the senior executive<br />
of Habib Bank. One of senior executive Yunus Habib was later arrested and is<br />
currently languishing in jail while another senior executive Safdar Abbas Zaidi<br />
was appointed minister by Benazir Bhutto, ostensibly, for not testifying against<br />
Asif Zardari, in the case about the loan sanctioned to Fauzi Ali Kazim.<br />
The Sick Mill Therapy, at <strong>Who</strong>se Cost?<br />
" Loans turn bad only when they are given to bad parties and not<br />
sanctioned on merit............These loans are taken out with the<br />
intention of never paying back."<br />
Yusuf Shirazi, Interview with The daily Dawn, 7.10.95.<br />
" At present there is a lack of commitment for loan recovery at both<br />
ends, at the government level and the level of the defaulters."<br />
G M Adamjee, Interview with The daily Dawn, 23.9.95.<br />
In 1984, General Zia ul Haq constituted a committee headed by Finance<br />
Secretary Mr. H U Beg to recommend revival of sick industrial units. It was a onetime<br />
exercise obviously meant to review the loans of the nationalized units dating<br />
back to pre-nationalization and devaluation of the currency, " making provisions<br />
to either reschedule or reduce their liabilities".<br />
Every elected govt in last 13 years has set up committees to revive sick<br />
industries. Since 1990, committees have existed in each nationalized commercial<br />
bank and financial institutions for writing-off reschedule loans. No mention was<br />
ever made by the banks, State Bank or politicians about the existance of these<br />
committees. While hearing a case against this banking malpractice on November<br />
98