According to available reports, the opposition has accused Nawaz Sharif's family and the family of Interior Minister Chaudry Shujat Hussain of using political pressure to secure loans that led to the collapse of credit co-operative societies in Punjab (Japan Economic Newswire 7 Nov. 1991; Keasing's 1991, 38438). A report from the Middle East News Network indicates that the Chaudry group already owed nearly $8.5 million to the Bank of Credit and Commerce International (BCCI) (11 Aug. 1991). On 5 July 1991 almost all the Pakistani-run BCCI branches throughout the world were liquidated following discovery of extensive fraud practices committed by the institution's top executives (The Economist 13 July 1991, 81). The author of a report published in Asiaweek on 26 July 1991 expressed fear that Pakistan could be the country hardest hit by the collapse of the BCCI (p. 24).

For further information on the credit co-operative societies and the BCCI scandals, please consult the attached documents.

No additional and/or corroborating information is currently available to the DIRB in Ottawa.

References

Asiaweek [Hong Kong]. 26 July 1991. "Cleaning Up the BCCI Mess."

The Economist [New York]. 13 July 1991. "The Many façades of BCCI."

Japan Economic Newswire. 7 November 1991. "Commission to Probe Nawaz Sharif Corruption Charges." (NEXIS)

Keasing's Record of World Events 1991. September 1991. Vol. 37, No. 9. Edited by Roger East. London: Longman Group UK Ltd.

Middle East News Network. 11 August 1991. Afzal Khan. "Sharif firm Denies charges on BCCI." (NEXIS)

Attachments

Agence France Presse (AFP). 6 November 1991. "Sharif Orders Judicial Probe Into Pakistan's Worst Financial Scam." (NEXIS)

Asiaweek [Hong Kong]. 26 July 1991. "Cleaning Up the BCCI Mess."

The Economist [New York]. 13 July 1991. "The Many faces of BCCI."

Far Eastern Economic Review [Hong Kong]. 19 September 1991. Salamat Ali. "Pakistan: Hands in the Till."

The Independent [London]. 18 October 1991. Ahmed Rashid. "Sharif Caught in Financial Deals Fall-Out." (NEXIS)

Japan Economic Newswire. 7 November 1991. "Commission to Probe Nawaz Sharif Corruption Charges." (NEXIS)

Keesing's Record of World Events 1991. September 1991. Vol. 37, No. 9. Edited by Roger East. London: Longman Group UK Ltd.

_____. July 1991. Vol. 37, No. 7. Edited by Roger East. London: Longman Group UK Ltd.

Middle East News Network. 11 August 1991. M. Afzal Khan. "Sharif Firm Denies Charges on BCCI." (NEXIS)

The Xinhua General Overseas News Service. 16 October 1991. "Pakistan Opposition Demands Resignation of Prime Minister." (NEXIS)