Islamabad( The COW News Digital)The Public Accounts Committee (PAC) has uncovered a major financial lapse involving the Zarai Taraqiati Bank Limited (ZTBL), revealing that the state-owned agricultural bank has failed to recover Rs9 billion in loans from 1,601 defaulters nationwide.
During a PAC session chaired by Junaid Akbar, members were left astonished when audit officials disclosed that these borrowers have not returned a single rupee. This massive default has raised serious concerns about loan oversight, accountability, and internal controls within ZTBL.
ZTBL, primarily tasked with providing agricultural credit to farmers, is struggling with growing numbers of non-performing loans. According to audit officials, the recovery rate from major urban centers such as Quetta, Karachi, and Lahore stands at only 16%. The rest of the loan amounts remain uncollected, adding to the financial strain on the institution.
PAC member Khawaja Shiraz questioned why ZTBL continues to operate at a loss when the overall banking sector in Pakistan is generating healthy profits. “Banking is the most profitable sector in the country right now. What’s dragging ZTBL down?” he asked.
Committee members voiced concerns that many loans may have been issued on non-merit or under political influence. The complete lack of repayments from a large number of defaulters suggests either poor screening or deliberate misuse of the credit system.
Chairman Junaid Akbar directed the audit team to double-check the claimed recoveries and present an updated report to the committee. He emphasized the need for transparency and swift action to recover the outstanding amounts. “We want full accountability and a plan to recover this public money,” he said.
ZTBL’s failure to recover billions has not only damaged its credibility but also threatens the agricultural sector that depends on accessible credit. Lawmakers called for reform within ZTBL and stricter enforcement mechanisms to ensure recoveries and prevent future abuse of state resources.
The PAC is expected to follow up with a recovery strategy and further scrutiny of the bank’s lending practices.
