PAC flags Rs 9.179 billion recovery shortfall at ZTBL as defaults surge

The Public Accounts Committee (PAC) of the National Assembly on Wednesday raised concerns over rising defaults and recovery shortfalls at Zarai Taraqiati Bank Limited (ZTBL), which resulted in a Rs9.179 billion impact on the exchequer in 2022, Dawn reported. 

Audit findings presented to the committee showed that the number of Special Asset Management (SAM) defaulters increased from 196,930 in 2021 to 221,736 in 2022. The total defaulted amount rose from Rs 44.464 billion to Rs 53.64 billion during the same period.

The shortfall was attributed to recoveries falling below targets by Rs 9.179 billion. The committee was informed that 1,601 SAM defaulters did not make any payments.

Recovery performance in the Quetta, Karachi and Lahore zones stood at 16% of outstanding amounts. 

The PAC was also told that fraud and forgery cases amounting to Rs1.25 billion were reported to the State Bank of Pakistan during the 2022 audit.

According to audit observations, employees were allegedly involved in these cases through the use of fake land documents, and management failed to recover the misappropriated amounts.