State Bank Unwilling to Identify Beneficiaries of $3 Billion TERF Loans

The State Bank of Pakistan (SBP) is unwilling to disclose a list of over 600 individuals who benefitted from the COVID-era $3 billion loans under the Temporary Economic Refinance Facility (TERF). In response to repeated demands of the Public Accounts Committee (PAC), Governor SBP Jameel Ahmed was reluctant to unveil such a list and instead offered to share details with the committee in an in-camera meeting. The committee was briefed on Wednesday that the central bank had offered the TERF loans via commercial banks and that publicly releasing the names of recipients would violate the confidentiality agreement between the banks and the individuals. The central bank governor said the loans in question supported industry and machinery imports and had no forex element. He said private banks accounted for more than 85 percent of lending, while the textile industry accounted for 42 percent of all debtors. While the governor highlighted that the TERF cash was Rs. 394 billion, PAC members disputed this claim. Regardless, the committee consented to the SBP Governor’s suggestion to hold an in-camera meeting.