Rehana Woolen Mill's default was reported by some media agencies and subsequently discussed by Public Accounts Committee. But this was vehemently denied in no uncertain terms by Gohar Ayub Khan.
Industrial Development Bank of Pakistan (IDBP) had forwarded loan for purchase of used machinery for the mill during 1962, he clarified.
These used machineries were available from defunct British and European mills.
Whereas, discarded and old woolen garments were to be recycled to provide raw material for production.
The claim, by Managing Director, IDBP that loan had been advanced due to political connections, was strongly denied by Gohar Ayub Khan.
He denied being a member of (Late general Zia-ul-Haq's) Shoora and State Bank had never contacted him to remove his name from their negative list.
Moreover, during that time Directors did not require any personal guarantees at that time.
IDBP had gone to court for liquidation of the company, and he had not resisted it.
The mill never committed any irregularity and had to close down in 1985 due to increase in price of raw material and low prices for woolen blankets manufactured by mill, he claimed.
Mill was ultimately liquidated by the competent court, he informed.
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