The Supreme Court was informed on Wednesday that Rs47bn in loans to individuals and companies were written off by banks during the last 12 years.

Advocate Syed Iqbal Haider, the counsel for the SBP, submitted to the court two lists of top 50 beneficiaries of the loan write-off.

Among the top beneficiaries is Redco Textile Limited owned by Saifur Rehman Khan, former chairman of the Ehtesab Bureau. His brother Mujeebur Rehman Khan was director of the company which managed to get a Rs1.12 billion loan written off by United Bank Limited in 2006.

Saddruddin Gangji and Hasham A.H. Gangji of West Pakistan Tank Terminal (Pvt) Ltd got a loan of Rs1.9 billion written off by Allied Bank Limited in 2005;

Younus Habib, the main character in the Mehran Bank scam, got Rs2.4 billion waived by Habib Bank Limited in 1997;

Mohib Textile Mills (Pvt) Ltd of the Saigols, got a Rs1.1 billion loan written off by National Bank of Pakistan in 2002;

Mian Muneer Ahmed of Firdous Spinning and Weaving Mills Ltd’s Rs780 million loan was written off by HBL in 2005;

Bayindir Insaat Turizm Ticaret’s Rs734 million loan was written off by ABL in 2008;

Glamour Textile Mills Ltd of Lahore got a loan of Rs533 million written off by NBP in 2002.

“The total written off amount is now estimated to be around Rs300 billion and Rs50 billion was waived during the past one year alone,” said Abdul Hafeez Pirzada – appearing as amicus curiae (friend of the court).

The Court also asked SBP to justify its circulars or recover the waived off loans. The Court also asked the SBP to direct all banks to serve notices to major borrowers who had gotten their loans written off.

A three-judge bench, headed by Chief Justice Iftikhar Mohammad Chaudhry, had taken notice of press reports that the central bank had quietly allowed commercial banks to write off loans of Rs54.6 billion under a scheme introduced by former president Pervez Musharraf.

During the hearing, the CJP observed that all the loans could be returned if the SBP wanted to. He said the people’s money would not be allowed to go to waste, adding that if the guardians of the nation turned into looters, then the people defiantly had the right to hold them accountable.

SBP Counsel Iqbal Haider contended by saying, “If we do that, there will be serious repercussions and the whole economy would collapse.”

Some of the 50 companies who got their loans waived are:

Eurogulf Enterprises Rs5342.38 million,
Younus Habib Rs2,476.40 milion
West Pakistan Tank Terminal Rs 1977.38 million,
Mercury Garments Industries Rs 1565.89 million,
Siraj Steels Ltd Muridke 1412.66 million,
Spinning Machinery Co Rs 1387.60 million,
Saadi Cement Ltd Karachi 1265.97 million,
Pakistan National Textile Rs 1,166.45 million,
Mehr Dastagir Spinning Mills Rs 1,160.5 million,
Mohid Textile Mills Rs 1,117.49 million,
Redco Textiles Ltd Rs 1,116.77 million,
Chaudhry Cables Rs 1,050.58 million,
Abdullah S Al-Rajhi Est Rs 1,031.90 million,
Quality Steel Works Rs 981.60 million,
Mekran Fisheries Rs 960.12 million,
Kohinoor Looms Rs 945.41 million,
Aziz Spinning Rs 864.95 million,
Farooq Habib Textile Rs 827.15 million,
Northern Polythene Rs 825.59 million,
Firdous Spinning Mills Rs 780.14 million,
Balochistan Foundary Ltd Rs 663.54 million,
Tawakkal Group of Industries Rs 642.22 million,
Mian Muhammad Sugar Mills Rs 584.90 million,
Punjab Cooperative Board for Liquidation Rs 538.23 million,
Pakpattan Dairies Rs 467.12 million,
Adamjee Industries Rs 448.84 million,
Karachi Property Investment Rs 1003.19 million,
AH International Private Limited Rs 901.21 million,
Coral Cast Ltd Rs 900.92 million,
Rashi Testile Mills Rs 859.17 million,
Muhammad Ibrahim Murad Rs 748.15 million,
Metropolitan Steel Rs 747.67 million,
Tristar Polyester Ltd Rs 737.02 million,
Bindder Insad Tourism Rs 734.44 million,
Commodore Industries Rs 722.76 million,
Target Readymade Garments Rs 696.46 million,
First Tawakal Modaraba Rs 628.65 million,
Synthetic Leather Industries Rs 620.56 million,
Nabchoon Garments Factory Rs 597.52 million,
Golden Textile Mills Rs 589.72 million,
Saadi Cement Rs 584.11 million,
Service Fabrics Ltd Rs 571.23 million,
Glamour Textile Mills Rs 533.88 million,
Punjab Road Transport Corporation 524.15 million,
Ravi Agri Dairy Products 509.73 million,
Pakistan Concrete Rs 477.70 million,
AlJamia & Alquasi Trading Rs 462.67 million,
Apparel Trading Establishment Rs 454 million,
Fabri Tex Limited Rs 454.32 million.