State Bank closes overdraft; Govt issues Rs 3bn to AJK

The State Bank of Pakistan on Friday closed the overdraft of Azad Kashmir government. The AJK government didnt have funds to pay salaries. The federal government has issued Rs 3 billion to AJK government. It is worth mentioning that the step is taken after the news was broadcast on Dunya News.According to SBP Karachi spokesman, the limit of Rs 70 crore was fixed for overdraft of Azad Kashmir government. However, overdraft of AJK government has reached Rs 1.20 billion with an increase of Rs 50 crore. Due to which, overdraft facility for AJK government has been suspended. This facility would be restored when AJK government will return additional overdraft money.