Daily Times

The Senate on Monday passed The State Bank of Pakistan (Amendment) Bill 2022 with a majority vote despite the treasury’s opposition. The bill, tabled by Mohsin Aziz of Pakistan Tehreek-e-Insaf (PTI) was passed through the vote count.

The bill sailed through a majority vote of 26 against 20 while 02 legislators abstained. State Minister of Finance and Revenue opposed the Bill saying let’s not change the law as the constitution not allowed this.

The bill seeks to rectify unjustified and inequitable credit lending that has been the long-standing demand of the smaller provinces. The bill will ensure that the minimum credit/lending of commercial banks to the private sector for establishing industry and commercial activities in smaller provinces is at par with those provinces’ total deposits.

According to the statement of objects and reasons, the private sector of smaller provinces of the country especially Balochistan and Khyber Pakhtunkhwa had a long-standing demand to eliminate improper, unjustified, and inequitable credit/lending by the commercial banks in their provinces which is leading to continuous deprivation, disparity and slow progress of industrialization and commercial activities in those provinces.

Senate Standing Committee on Finance in its report laid in the Senate on March 10, 2021, observed that commercial banks can not be forced to extend loans unless a law exists that demands the same, hence, recommended bringing legislation in this regard.

Moreover, the Senate of Pakistan on May 31, 2021, also unanimously passed a resolution demanding immediate and result-oriented steps including the introduction of new legislation or amending the present laws/rules/regulations to ensure that the minimum credit /lending of the commercial banks to the private sector for establishing industry and commercial activities in the smaller provinces is at par with those provinces’ total deposits in the banks.