ISLAMABAD - The State Bank of Pakistan will issue a new circular for scrutinising all the cases of written-off loans under Circular BPD-29 and others from 1971 to onwards. Iqbal Haider, counsel for SBP, on the short notice after consulting the Governor SBP informed the court on Wednesday. 'Shahid H. Kardar, Governor State Bank of Pakistan, has agreed to issue new circular containing ways and means to examine the cases of write-off loans, he added. The court has mandated to the counsels of all the parties in the case to prepare a draft of circular and submit it before the bench by Thursday (today). The Chief Justice said after finalisation of circular by SBP officials the matter would be referred to the Commission, whose terms of reference have already be formulated, to decide the written-off loans cases. The court said that commission should have power not only to re-examine old loan cases, but if need arises reopen them as well. A three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry which comprised Justice Muhammad Sair Ali and Justice Ghulam Rabbani was hearing a suo moto case of the written-off loans. The State Bank has waived off loans worth Rs 256 billion from 1971 to 2009. During the proceedings, the Chief Justice said that they were examining the legality and Constitutionality of BPD-29 on the request of politicians, particularly MQM Quaid Altaf Hussain, who has sent an application that written-off loan cases from 1971 onwards be examined. He said according to Section 25AA of the Banking Companies Ordinance 1962 'the SBP shall prepare, and submit to the Federal government, a special report every year on cases of written-off loans, mark up and other dues, or financial relief through rescheduling and restructuring of loans in which established banking practices or authorised procedures have been departed from with a view to causing wrongful loss to the bank. If the matter raised in the report relate to public interest, the Federal government may submit the report, or such part of it as relates to public interest to Parliament or to the Standing Committee of a House of Parliament dealing with finance. The Chief Justice said but this section has been ignored. 'There was a need to give equal rights to everyone to improve the economy, the CJ said, adding that billions of rupees could not be given for personal benefits. The court observed that authorities did not undergo the exercise to check the basic documents and particulars of an industry or firms before writing-off its loans. The Chief Justice said genuine borrowers could get rid of their loan only after completing lot of formalities and providing so many documents.