One of the fundamental reasons for Pakistan’s economic distress lies in the decades-long practice of excessive and unnecessary government expenditures. In much wealthier nations, the size of ministerial cabinets is typically quite small, yet in Pakistan, despite persistent financial challenges, the number of ministers continues to grow. Rather than being driven by actual necessity, ruling parties often expand the cabinet to reward their favored individuals at the expense of the national treasury. However, the current financial crisis has reached a point where it has become imperative to curtail government expenses as much as possible and prevent the misuse of public funds by the ruling elite.
In this context, an important development occurred recently when the Rightsizing Committee, tasked with reducing government expenditures, made significant recommendations. These include the elimination of 150,000 positions, the merging of 12 departments into five ministries, and the complete closure of 28 institutions. The committee, headed by the Federal Finance Minister and meeting under the chairmanship of the Prime Minister, also suggested outsourcing basic services such as cleaning to further reduce costs.
Another significant development is the Pakistan Information Commission’s directive to the State Bank of Pakistan to publicly release a list of the top 1,000 loan defaulters within three weeks. The Commission dismissed the State Bank’s final review petition against the disclosure, ordering the release of the information by September 5. The State Bank had argued in its appeal that while it possesses the list of major defaulters, it is exempt from sharing this information under the Banking Companies Ordinance of 1962, specifically Section 13A, which pertains to “Loyalty and Confidentiality.” According to this section, banks and financial institutions are prohibited from sharing customer information unless legally required.
However, the Information Commission, in its ruling, stated that the State Bank’s role as a regulator does not obligate it to maintain records of loan defaulters and that it can obtain these records from the respective banks to comply with the directive. The Commission emphasized that instead of acting as a barrier to information access, the State Bank should fulfill its role as a vigilant and proactive regulator. According to Shoaib Siddiqui, the head of the Information Commission, the State Bank has until September 5 to comply, and any failure to do so could result in strict action under Sections 20 and 22 of the Right to Access of Information Act 2017.
The significance of this decision cannot be overstated. If implemented, it could mark the end of the long-standing and reprehensible practice in Pakistan where the wealthy take out massive loans only to default on them or have them written off through their influence. This decision should finally put an end to the secrecy surrounding the names of large defaulters who, leveraging their power, manage to escape accountability after securing large loans. The injustice whereby the properties of small defaulters are confiscated, while those holding assets worth billions evade the law, must be permanently eradicated.
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