IHC Grants Temporary Relief to Banks With Poor Lending Record Against Govt Tax

The Islamabad High Court has granted temporary relief to around 12 banks against a government-imposed tax tied to private-sector lending, reported Bloomberg. This tax targets banks whose loans to the private sector fall below 50 percent of deposits. This measure was introduced to boost state revenue under Pakistan’s $7 billion IMF program. Pakistan Banks’ Association CEO Muneer Kamal said that in individual cases, the court has restrained the government from collecting this tax until a final ruling is made on the petitions. The next hearing is scheduled for December 3, but the timeline for a final decision remains uncertain. The court order stipulates that “no coercive action” will be taken against Meezan Bank Limited, MCB Bank Limited, Askari Bank Limited, Citibank’s Pakistan unit, Standard Chartered Bank Pakistan Limited, and Habib Metropolitan Bank Limited until the case concludes.