JEDDAH, 14 March 2003 — Pakistan has strongly dispelled apprehensions that actions of its National Accountability Bureau (NAB) have been adversely affecting investment inflow.
“NAB is not against the business community. In fact, its mandate to root out corruption and recover the national wealth, particularly from loan defaulters and corrupt officials is very much within the context of good governance reforms initiated by the government under Pervez Musharraf’s presidency,” NAB Chairman Lt. Gen. Munir Hafiz told a recent meeting of Pakistan Executives Group (PEG) here.
“The reforms are intended to improve the investment climate and encourage the flow of investments,” he said.
He urged overseas Pakistani investors to consider doing business in the country and assured them that most factors of importance to them were in place, including a fairer playing field for all, a credible arbitration mechanism and much improved economic indicators.
Refuting that the accountability process was a disincentive for investment, Hafiz said: “The accountability process has helped in restoring investor confidence.”
According to him, Pakistan’s credit rating too has improved dramatically as has its position on the Transparency International’s Corruption Perception Index, which lists Pakistan at No. 24, an improvement of 21 places since 1996.
“Loan defaulters, who include some of the biggest names in the country, have willfully defrauded the banking sector of a staggering 200 billion rupees by 1999. In just three years of operation, NAB has helped recover 10 billion rupees in 23 cases of willful default.
The strong signal sent to chronic loan defaulters has resulted in the recovery of a further 80 billion rupees in bad loans,” he said.
Replying to questions, Hafiz denied that any cases had been withdrawn on political grounds.
“NAB has no authority to prosecute serving members of the judiciary or the armed forces, except those who had left the service or those holding public office,” Hafiz said.