Pakistani banks to write off loans of rice millers, traders

The government of Pakistan will pick up 50 percent of the outstanding loans including mark-up of rice millers/traders.

Thus the Central Bank had directed all commercial banks to write off the outstanding loans of rice millers and traders of flood-affected areas of Sindh and Balochistan.

The banks involved were Allied Bank, Bank Alfalah, MCB Bank, National Bank of Pakistan, and Small and Medium Enterprises Bank.

The Economic Coordination Committee of the Cabinet had decided that necessary budgetary provision may be made.

The letter stated that the banks should ensure that only the affectees of the floods in 2010 will get benefits out of this dispensation and this process is to be monitored by SBP.

According to the said letter ECC also directed the finance secretary to look into the problems of small farmers with regard to their insured loans and take up the matter with concerned banks and insurance companies.

Industry sources believe that this is a novel way of influence the upcoming general elections and simply a way to give monetary benefit to the voters and political workers of the party.