[1][2] The father of Muhammad Nawaz Sharif (former Prime Minister), initially set up an iron-melting furnace in, Lahore and quickly expanded this business in the early years of Pakistan.
[5] After nationalising this industry, its earnings were deadly dropped but despite all the efforts by Ittefaq Family it was not privatised due to various political issues.
[7] Ittefaq Foundries opened a credit account with the National Bank of Pakistan's Wapda House branch in Lahore in August 1979, initially obtaining a facility of Rs 17.5 million.
[8] In June 1993, Ittefaq Foundries utilized a letter of credit for Rs 310 million to import shredded steel scrap from the U.S., paying only five percent of its value.
[9][10] This followed a complaint lodged on December 10, 1999, by the bank's zonal chief and manager at Wapda House, stating that the company had defaulted on payments since 1994.
[9] In 2012, NAB informed the Lahore High Court (LHC) that the Sharif family had defaulted on loans totaling Rs 3.8 billion.
During the proceedings, NAB's counsel argued that the LHC's ruling hindered ongoing corruption investigations and pushed for its reversal, citing legal precedents that supported cases against guarantors of defaulted loans.
[12] The judge noted that the allegations against the foundry appeared to be politically motivated and confirmed that there were no outstanding disputes between the Sharif family and the bank.