NA Standing Committee on Finance, Revenue and Economic Affairs meets

Meetings of the Standing Committee on Finance, Revenue and Economic Affairs were held today in National Bank Headquarters, State Bank of Pakistan, Conference Rooms at 11:00 a.m. and 2:30 p.m. respectively, under the chairmanship of Mr. Faiz Ullah, MNA.

President National Bank of Pakistan briefed the Committee about the functioning of the Bank and its performance for last ten years. He informed that upgradation of I.T.Wingand restructuring of Human Resource of the Bank were required to achieve the targets. Mr. Aamir Zarief, Legal Adviser of the NBP informed that the matter pertaining to pensioners was pending before the Apex Court, wherein the pensioners have claimed sixty-one billion rupees against the Bank.

He further informed the Committee that Supreme Court of Pakistan has passed a judgement with the directions that outsource employees of the Bank may be regularized. The Committee unanimously recommended that the directions of the Court should be implemented with its true letter and spirit, on priority basis.

The Committee members have enquired about the current status of the Bangladesh scam. President NBP informed that forty billion rupees have been recovered out of one hundred and fifty four billion in said scam, till date. The Committee expressed its concern by not taking disciplinary action against the employees of National Bank, involved in the Bangladesh scam and directed the Bank to prepare a comprehensive briefing in this regard.

The Committee members have expressed their worry about the quality of consumer services provided by the Bank. The Committee has also directed the President NBP that a Committee should be constituted to look after the disciplinary issues of the Bank, in its different branches in the country.

The Committee paid its visit to the State Bank of Pakistan, Karachi. Governor State Bank of Pakistan welcomed the members of the Committee and briefed them on the working and functioning of the Committee. He informed that SBP was performing its function under the State Bank of Pakistan Act, 1956. He also highlighted the SBP’s legal mandate sets its key objectives, which was stability and growth. He further explained the key functions of SBP Monetary Policy Management and organizational structure of the Bank. He said currently four subsidiaries were functioning under the command of the SBP i.e. Banking Services Corporation, Deposit Protection Corporation of Pakistan, National Institute of Banking and Finance, and Pakistan Security Printing Corporation. He apprised the Committee about the role of Monetary Policy Committee and its composition. He added that SBP was focusing on three major sectors i.e. Agriculture, SMEs and Housing. He further said that SBP was promoting a new Islamic Banking Policy in the country to facilitate the large segment of society.

Mr. Samar Hasnain, Executive Director, SBP, briefed the Committee about the new housing schemes launched by the SBP. He said that government has decided to provide 2.7 million to low income person for construction of houses. The Committee members were of the view that housing was not only a social need but also a fundamental pillar for development of economy and employment generation.

Mr. Tariq Bajwa, Governor State Bank of Pakistan invited the attention of the Committee towards the matter highlighted by the said Committee in its previous meetings regarding to facilitate the special persons. He announced the concessionary of Small Enterprise Financing and Credit Guarantee Facility for Special persons. He said that realizing the vulnerability of persons with disabilities in the economy and cost associated with their exclusion, SBP in-line with its priority sector development has developed a scheme for special persons. He further added that this financing facility was expected to improve access to finance for special persons falling under Small Enterprise (SE) category at a concessional rate of 5% per annum. Under the scheme, banks and DFIs will provide financing facilities to special persons for establishing new business enterprises or for expansion of existing businesses. State Bank of Pakistan will provide refinance to banks/DFIs up to 100% of finance extended by them. Special persons can avail financing up to Rs.1.5 million for a maximum period of 5 years including grace period of 6 months. SBP will also provide risk coverage of 60% to banks/DFIs on their outstanding loans under the scheme. This financing facility has been issued with the main objective of improving the socio-economic life of special persons in Pakistan.

The following members attended the meeting:

Sardar Nasrullah Khan Dreshak, Mr. Jamil Ahmed Khan, Mr. Faheem Khan, Ms. Nusrat Wahid, Dr.Ramesh Kumar Vankwani, Mr. Muhammad Israr Tareen, Mr. Qaiser Ahmed Sheikh, Mr. Ali Pervaiz, Dr. Aisha Ghaus Pasha and Ms. Nafisa Shah, besides the senior officers of National Bank of Pakistan and State Bank of Pakistan.


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