Amid growing turmoil within the state-owned Bank of Khyber (BoK), sources have painted a grim picture of institutional decay, alleging that “merit is a joke” and that the current Managing Director, along with his team, has systematically squandered public funds under the watch of the provincial government.

As the Khyber Pakhtunkhwa (KP) government scrambles to contain the fallout, shocking revelations have emerged: a defaulted loan of PKR 1 billion granted to a private company with questionable eligibility, and a sitting HR Head embroiled in a serious harassment case.

The Billion-Rupee Black Hole

The most damning allegation centers on the bank’s lending practices. Insiders claim the Bank of Khyber sanctioned a PKR 1 billion loan to a private firm without adhering to standard due diligence protocols.

“The authenticity and eligibility of the borrower were never properly vetted,” a senior banker told on condition of anonymity. “Today, that company has defaulted, and the public money—money belonging to the people of Khyber Pakhtunkhwa—has been thrown into a bottomless pit.”

“The authenticity and eligibility of the borrower were never properly vetted,” a senior banker told on condition of anonymity. “Today, that company has defaulted, and the public money—money belonging to the people of Khyber Pakhtunkhwa—has been thrown into a bottomless pit.”

With the borrower now in default, the bank is facing a significant non-performing loan (NPL) crisis, raising urgent questions about whether the funds were disbursed based on merit or on extraneous pressures.

MD’s Performance Under Fire

The bank’s top leadership has not been spared from scrutiny. The current Managing Director has been labeled “unsatisfactory” by multiple stakeholders. Critics allege that under the MD’s tenure, the bank has devolved into a playground for political favorites, sidelining professional bankers.

“The MD and the current slot have ruined public funds in all ways under the ‘OTI’ (On-the-Issue) government,” a source said, using a colloquial reference to the provincial administration’s handling of the bank.

The discontent has reached the........

© The Patriot