Islamabad: It has been revealed that Private Power & Infrastructure Board (PPIB), a statutory organization working under ministry of Water and Power, has illegally invested Rs 31 billion in a private bank. Auditor General of Pakistan (AGP) has also pointed out the investment of PPIB in a private bank as against the rules and procedure, and AGP is continually probing the matter.
AGP has clarified that according to finance department rules, only the 20 pc of surplus funds can be invested in private schemes, but PPIB has invested the 40 pc of available surplus funds.A banking expert informed “Online” that such a huge investment can only be allocated through a competitive bidding, the bank who offer the best interest rate can be given the contract, but PPIB has not followed any such procedure.
He also added that the interest rate on Pakistani Currency is approximately 4 to 4.5 and at most it is 6 to 7 pc, but on foreign currency it is 2 to 3 pc.
The bank given this amount, Habib Metro Bank is among the second category banks of Pakistan, first category bank National Bank of Pakistan, Habib Bank and others were neglected.
