State Bank's TERF loans under scrutiny for misuse allegations

In countries like Pakistan, India, and Bangladesh, government financial schemes often spark debates about their actual beneficiaries—whether they serve the public or the elite.

In Pakistan, the State Bank launched the Temporary Economic Refinance Facility (TERF) in March 2020 during the pandemic to support industrial growth and recovery by offering long-term soft loans at low rates.

Initially capped at PKR 170 billion, loans under TERF exceeded PKR 430 billion.

Critics allege misuse, over-invoicing, and elite favoritism, raising concerns about inflation and exchange rate pressure.

Parliamentary discussions and forensic audits have been suggested but remain inconclusive.