PAC Flags Rs9.179bn Loss in ZTBL Defaults

The Public Accounts Committee (PAC) of the National Assembly on Wednesday expressed alarm over escalating loan defaults and weak recovery performance at Zarai Taraqiati Bank Limited (ZTBL), which caused a financial impact of Rs9.179 billion to the national exchequer in 2022, Dawn reported.

Audit reports placed before the committee revealed that the number of Special Asset Management (SAM) defaulters climbed from 196,930 in 2021 to 221,736 in 2022. Meanwhile, the total volume of defaulted loans surged from Rs44.464 billion to Rs53.64 billion within the same timeframe.

The revenue gap stemmed from recoveries missing their targets by Rs9.179 billion. Lawmakers were informed that 1,601 SAM defaulters failed to make any repayments at all.

Recovery rates in the Quetta, Karachi, and Lahore zones were recorded at only 16% of outstanding dues.

The PAC was further briefed that fraud and forgery cases totaling Rs1.25 billion were reported to the State Bank of Pakistan during the 2022 audit review.

Audit findings also indicated alleged involvement of bank employees through forged land documents, while management was unable to reclaim the embezzled funds.