ISLAMABAD: At least 25 sugar mills owned by influential individuals with ties to the country’s political elite have defaulted on loans worth over Rs 23 billion taken from the state owned National Bank of Pakistan (NBP).
The revelations came to light as part of an audit of NBP and revealed a number of major defaulters. Many of these defaulters have strong and often direct ties to government politicians. The sugar industry in Pakistan is one of the most powerful in the country. Almost all of the 91 sugar mills in the country are owned by household name politicians and their families, all of whom belong to different political parties. Profit has covered the nexus between sugar barons and politicians in the past.
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Sources familiar with the matter that have shown Profit the relevant documents said that a significant portion of this debt—approximately Rs 12 billion—is attributed to eight sugar mills operated by Anwar Majid’s Omni Group. Mr Majid and his Omni Group came to national prominence some years ago due to their alleged involvement with President Asif Ali Zardari. The group was also the subject of a Supreme Court case that also involved the President.
And they aren’t the only ones accused of defaulting. The Sharif family’s Ramadan Sugar Mill is another notable defaulter, with an outstanding loan of Rs 2.59 billion. Meanwhile, Ramzan Sugar Mill has failed to repay a loan of Rs 62 crores to the National Bank, further compounding the institution’s financial woes. The situation has brought to light
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