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The delays in installing tracking devices on financed tractors have exposed serious gaps in operational efficiency and accountability between Zarai Taraqiati Bank Limited (ZTBL) and M/S East West Insurance Company Limited (EWIC). 

Despite the bank providing complete information on borrowers and tractors to EWIC, only 308 tracking devices have been installed on already delivered tractors, highlighting a significant lag in fulfilling contractual obligations. This slow progress reflects both the insurer’s inadequate execution and the bank’s lack of proactive follow-up to ensure timely compliance.

Clause No. 15 of the agreement between ZTBL and EWIC mandates that tracking devices be installed on all tractors to secure the bank’s assets and facilitate monitoring. The failure to comply with this clause has prompted the bank to increase the performance security ratio from 10% to 20% of the total insurance premium held in the insurer’s account at ZTBL, Model Branch, Lahore. While this measure aims to protect the bank’s interests, it also underscores previous weaknesses in enforcing contractual terms and monitoring performance.

The critical situation indicates that both the insurer and the bank have contributed to the delay. The insurer’s slow installation process is compounded by a lack of coordinated oversight from the bank, as well as inadequate engagement with respective zones and branches to ensure that trackers are fitted promptly. 

The department has now issued directives for immediate action, including the installation of trackers on new tractors at manufacturing outlets and the expedited fitting of devices on already delivered tractors. The emphasis on coordination across ZTBL zones and branches highlights that earlier operational follow-ups were insufficient, allowing delays to persist.

This situation reflects systemic issues in execution and monitoring, which could potentially compromise the security of financed assets and the effectiveness of recovery mechanisms. Both the bank and the insurance company are now under pressure to address these shortcomings urgently. 

The slow pace of implementation not only violates contractual obligations but also demonstrates the need for more robust enforcement mechanisms, closer supervision, and immediate corrective action to ensure that all financed tractors are equipped with tracking devices without further delay.