SC Orders SBP to Deposit Dam Fund in NBP – Research Snipers

SC Orders SBP to Deposit Dam Fund in NBP

dam fund

On Thursday, the Supreme Court instructed the State Bank of Pakistan—SBP to deposit the collected dam fund in NBP—National Bank of Pakistan for an auction.

A 5-member larger bench of the Supreme Court led by Justice Sheikh Azmat Saeed heard the case regarding the construction of the Diamer and Bhasha Dams. During the case proceedings, the bench instructed the SBP to deposit the collected amount of dam fund in NBP.

The court in its verdict observed that NBP had given assurance to the court for paying an interest rate of 12.60percent. The representatives of the NBP told the court that this is an interest rate for 7 days until the 20th of June.

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The bench mentioned that there would be treasury bills implemented on the amount for 3 months after the auction and the amount could be loaned to the National Bank of Pakistan for 7 to 5 days on an interest rate of 12.60percent.

Justice Ijaz-ul-Ahsan said that the top court would not be a part of the auction, they would instruct State Bank of Pakistan for conducting the auction.

Justice Azmat Saeed said that the SBP is bound to give the amount to NBP by tomorrow and a fine would be imposed on the apex bank in case of any delay and suspended the hearing of the case until an indefinite period.

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