State Bank of Pakistan (SBP) directed commercial banks to refund unpaid public money under National Debt Retirement Program (NDRP) which was deposited to support the government for the payment of debts and liabilities.
A senior banker told ProPakistani that banks will only refund the actual amount deposited in banks without any profit because NHRP-II is a non-profitable scheme. Most of the amount was deposited with 5 big banks (NBP, HBI, UBL, MCB and ABL) under NDRP-II.
SBP said:
It has come to our notice that some of the deposits with banks under NDRP-II are pending or still unpaid. All such depositors may approach their respective branch of banks along with the original receipt/certificate for encashment of their deposits under NDRP-II (Qarz-e-Hasna).
According to the reports, the government had borrowed Rs 2.8 billion from the public but used only Rs 1.7 billion for debt retirement, which was instituted in 1997 by then Prime Minister Nawaz Sharif after coming to power to discharge the ever increasing national debt liabilities.
The minimum deposits in Qarz-e-Hasna and term deposit were Rs 40,000 or more than Rs 10,000.
The contributions to the funds from domestic and foreign donors/contributors were received in State Bank of Pakistan, Scheduled Banks and Treasury Offices and they were Rs 2.805 billion with Rs 2.032 billion donation, Rs 470.6 million Qarz-e-Hasna and Rs 302.5 million term deposits.
The government retired the debt of Rs 1.7 billion from Rs2.032 billion received under donations. Rs 332.142 million donations, Rs 470.6 million Qarz-e-Hasna and Rs302 million term deposits were transferred to the consolidated fund.
The balance blocked amount stands at Rs 105 billion which was partly transferred to the federal consolidated fund, non-food account, on 27.03.1999 in terms of Finance Division’s letter to facilitate State Bank offices as well as commercial banks to make refund of the Qarze-Hasna and terms deposits on maturity of two years period so that the depositors may not be put to inconvenience.
The announcement also said that the commercial banks have also been advised to facilitate the claimants and en-cash the deposits after due verification in accordance with respective rules & procedures. The banks after making the payments will claim reimbursement from SBP against the deposit of paid documents and instruments etc.
Background:
It may be recalled that Government of Pakistan launched National Debt Retirement Program (NDRP) with a view to discharge the ever increasing national debt liabilities. Amounts in NDRP were to be accepted from an individual, firm, company, body and institutions etc. under the categories of Donations (NDRP-I); Qarz-e-Hasna (NDRP-II) and Term Deposit (NDRP-III).
The deposits under NDRP-I (Donations) were non-refundable whereas deposits under NDRP-II and NDRP-III were for a minimum period of two years. Depositors were issued a receipt/certificate against deposits under NDRP-II by banks and Special Saving Certificates (SSC) /Defence Saving Certificates (DSC) were issued against deposits under NDRP-III by Central Directorate of National Savings, Ministry of Finance. After maturity of two years, the depositors were able to encash their amounts at par in case of NDRP-II and as per terms & conditions of SSC / DSC for deposits under NDRP-III.
Commercial banks have not paid millions of rupees to depositors under National Debt Retirement Program (II and III) for past many years despite repeated efforts by the customers.
The central bank has taken the notice asking depositors to approach their respective branch of banks along with the original receipt/certificate for encashment of their deposits under NDRP-II (Qarz-e-Hasna).
State Bank of Pakistan (SBP) has advised commercial banks to release the deposits of National Debt Retirement Program (II and III) after maturity of two years which will be reimbursed to them against the deposit of paid documents and instruments.
Recently, Finance Division has acknowledged that the donation and term deposits received from the individuals, firms, companies, institutions and others under Qarz-e-Hasna scheme could not be fully utilised for repayment of the debt.
Qarz Utaro aur Panama Sanwaro!