The State Bank of Pakistan (Amendment) Bill was approved by the Senate with a majority vote, despite the treasury's objection. Twenty-six lawmakers voted in favour of the bill, which was presented by Pakistan Tehreek-e-Insaf (PTI) member Mohsin Aziz, while 20 voted against it and two abstained.

The State Minister of Finance and Revenue rejected the bill, arguing that the Constitution does not permit doing so. The bill aims to address irrational and unfair lending, which has long been a complaint of the smaller provinces. The law would ensure that the minimum credit/lending provided by commercial banks to the private sector for the purpose of developing businesses and industries in smaller provinces is equal to the total deposits of such provinces.

According to the statement of objectives and reasons, the commercial banks' inappropriate, unjustifiable, and unfair lending practises have long been demanded to stop by the private sector of the country's smaller provinces, particularly Balochistan and Khyber Pakhtunkhwa.

It is resulting in ongoing poverty, inequality, and the slowly advancing industrialisation and economic activity in smaller provinces. In its report submitted to the Senate on March 10, 2021, the Senate Standing Committee on Finance noted that commercial banks cannot be compelled to provide loans without a law requiring so. Therefore, it advised introducing legislation in this regard.

Additionally, on May 31, 2021, the Pakistani Senate unanimously approved a resolution calling for immediate and effective action, including the introduction of new legislation or the amendment of existing laws, rules, and regulations to ensure that the minimum credit lending by commercial banks to the private sector for the development of industrial and commercial activities in the smaller provinces is equal to those provinces' total deposits in the banks.

Credit : Independent News Pakistan-WealthPk