Commercial banks refuse to give loan to federal government

ISLAMABAD: Commercial banks on Friday refused to provide loan to Pakistan Tehreek-e-Insaf-led government in the centre, saying that they have already lent around Rs600 billion.

The federal government had asked for Rs50 billion loan from private banks for payment of circular debt of power sector.

At this, a consortium of eight commercial banks conveyed it to the government that they have already lent approximately Rs600 billion and cannot provide further loans.

After refusal from the banks, the Ministry of Finance approached the consortium requesting it to provide the loan this time.

The ministry reassured that the government would not ask for another loan in future, without payment of previous loans.

At this, the consortium informed the ministry that it would again ponder over the request next week.