The National Assembly Standing Committee on Finance and Revenue has approved the Financial Institutions (Amendment) Bill 2026 that grants banks expanded powers to act against loan defaulters, including property seizure and public disclosure of defaulters’ identities.
Under the proposed framework, banks will be able to initiate recovery action if borrowers fail to repay loans within the agreed timeframe.
However, the law requires banks to issue three formal notices within 90 days before any enforcement action. For property seizure, banks will also need to seek government approval before proceeding.
Minister of State for Finance Bilal Azhar Kayani said the legislation aims to improve financial discipline and strengthen loan recovery mechanisms in the banking sector.
The bill further restricts the rental of properties acquired under housing finance schemes, barring borrowers from leasing such assets to third parties.
It also allows competent authorities to publish the names and addresses of loan defaulters to increase transparency and discourage willful default.
Strange way of enforcing discipline but because its Pakistani logic we shouldn’t be surprised.
Civilized government Vs civilized public.Here both lacks.May Allah protect Pakistan.Ameen.
Start with big defaulters, say 100 millions and more. In case of companies, name the Ultimate Beneficial Owners.