ISLAMABAD: Naeemul Haq, chief spokesperson for Pakistan Tehreek-i-Insaf (PTI), has called for an investigation into the alleged role of Ashraf Mahmood Wathra, the sitting governor of State Bank of Pakistan (SBP), in creating a company during 1990s for arranging a loan of $20 million from Faisal Bank for the Chaudhry Sugar Mills which is owned by the family of Prime Minister Nawaz Sharif.

Mr Wathra was associated with the Faisal Bank at that time.

Talking to Dawn on Monday, Naeemul Haq said that Mr Wathra had a long association with the Faisal Bank and his alleged role for the businesses of the Sharif family must be investigated.

He said he had himself associated with international banks for more than two decades and for him this was a unique case in which a bank official had created a company for a group which was seeking a loan from the bank.

Speaking at the joint sitting of the parliament on Monday, PPP leader Senator Aitzaz Ahsan also raised questions over the role of the Faysal Bank’s management in granting such a huge loan to a company owned by the Sharif family in early 1990s.

He said as per his understanding of the law, the then management of the Faysal Bank must be put in the dock for arranging investment for the Sharifs. “This $20 million loan smacks something,” he added.

After the role of the company (known as Chadron company, a subsidiary of the Faysal Bank) in the $20 million loan came to the light on Sunday, the SBP issued a formal clarification.

It said: “Chadron was created to fund $20 million for Chaudhry Sugar Mills. The Special Purpose Vehicle (SPV) was created by the Faysal Bank, which was the owner of Chadron. This is a normal and usual mode to finance companies in distant markets by international financiers. The loan created by Faysal bank through a subsidiary is fully repaid 15 years ago. The prime minister or his family members never owned this company.”

The clarification was released by the chief spokesman of the central bank, Abid Qamar.

As per the resume of Mr Wathra, available at the official website of the SBP, he remained associated with the Faysal Bank Limited from May 1992 to March 1999 in senior positions, such as executive vice president & country risk manager, executive vice president & regional manager and senior vice president & chief manager.

Mr Wathra was appointed governor of SBP with effect from April 29, 2014, for a period of three years. He was appointed acting governor of the central bank on Jan 31, 2014 after the resignation of Yaseen Anwar.

Talking to Dawn, SBP’s chief spokesperson Abid Qamar said that Mr Wathra had worked for the Faysal Bank.

He declined to comment on a question that whether or not Mr Wathra’s had a role in the $20 million loan for the Chaudhry Sugar Mills, saying that “he himself can answer this question”.

Published in Dawn, April 13th, 2016