Billions in Loans Waived by National Banks No Action Taken Against Politicians Behind the Fraud. Loan Write Off Scandal Billions Lost, No Accountability in Pakistan For years, Pakistan has witnessed one of the biggest financial scams in its history billions of rupees in loans written off by national banks for influential individuals, including top politicians, industrialists, and businessmen. While ordinary citizens struggle to pay bills and taxes, the elite have been forgiven massive debts without facing any legal action.
Billions Waived Without Consequences
A detailed report by the State Bank of Pakistan (2007) revealed shocking facts.
From 1985 to 2002, hundreds of billions of rupees in loans were waived. These loans were given to powerful politicians, their companies, and their associates. No accountability or punishment ever followed. During the government of Nawaz Sharif in 1993, this practice reached alarming levels. Later during Benazir Bhutto’s rule in 1994, another wave of loan write-offs happened. By the early 2000s, this trend had become a norm.
Who Benefited?
The report mentioned names of major political figures and industrialists, including. Prominent leaders from multiple political parties. Big businessmen who had ties with the ruling elite. Former Prime Ministers, Ministers, and their families. Even some retired bureaucrats and generals were involved. Many took repeated loans and never returned a single rupee, yet kept receiving new loans.
How Big Was the Scam?
The numbers are shocking.National Bank of Pakistan wrote off Rs. 2.8 billion.
- United Bank: Rs. 1.1 billion.
- Habib Bank: Rs. 0.5 billion.
- MCB: Rs. 0.9 billion.
- Bank of Punjab: Rs. 0.6 billion.In just one case, Rs. 5 billion was waived for only 67 individuals. Some single families had loans exceeding Rs. 10 billion forgiven.
Why No Action?
Despite clear evidence and reports, no arrests were made. NAB, FIA, and other law enforcement agencies failed to take action. These influential people used their power to escape justice, while Pakistan’s economy continued to suffer. The reality for common people while the rich had their loans forgiven, ordinary citizens were left to bear the burden. Increased inflation, high taxes and growing unemployment are the direct results of such corruption. Unless the law treats the elite and the common citizen equally. Pakistan’s financial future will remain under threat. National institutions must rise above political influence and take serious steps toward justice.