In a shocking turn of events, it has been revealed that the aid of $3 billion received from international financial institutions during the Covid-19 pandemic was allegedly distributed among 620 businessmen as interest-free loans during the PTI regime.
This was disclosed in a meeting of Public Accounts Committee, chaired by Chairman Noor Alam Khan on Tuesday. During the meeting, the committee ordered the Federal Investigation Agency and the National Accountability Bureau to investigate the matter.
Under the Temporary Economic Refinance Facility scheme, the previous government provided interest-free loans for 10 years to 620 industrialists, as disclosed by the PAC chairman.
This revelation sparked concerns among PAC members, with Birjis Tahir emphasising the need to determine where the money was invested. In response, Mohsin Aziz, another PAC member, highlighted the positive outcomes of the scheme, stating that 3.2 million people gained employment, and exports increased by $4 billion. He also mentioned that similar facilities were provided in the past.
During the meeting, the PAC took decisive action by ordering the Auditor General to conduct a performance audit of the $3 billion aid. Additionally, the FIA and NAB were instructed to initiate investigations into the matter. Chairman Noor Alam Khan went a step further and directed the writing of letters to the Army Chief and Defense Secretary, requesting that the Inter-Services Intelligence participate in the investigation.
The PAC chairman expressed dissatisfaction with the Ministry of Finance for failing to provide the names of the loan recipients, despite being instructed to do so on April 19. He demanded that the Governor State Bank, and Secretary Finance present the list within 24 hours. The Finance Secretary has also been summoned to attend the next meeting of the PAC, scheduled for today (Wednesday).
Tensions ran high during the meeting, resulting in a heated exchange between Senator Mohsin Aziz and Member of the National Assembly Birjis Tahir. The clash of opinions highlighted the gravity of the situation and the need for a thorough investigation.
In addition to the aid distribution issue, the Secretary of the Power Division revealed during the meeting that the circular debt of the power sector had reached Rs2,370 billion by June. The PAC chairman expressed concern over the prevalence of unannounced power load-shedding, even during the Eidul Azha holidays.
