Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan on Wednesday said that proposed reforms to Pakistan’s bankruptcy legislation will serve as a “comprehensive and supportive legal framework” to ensure industrial stability and revive struggling enterprises.
He made these remarks while chairing a high-level meeting of sub-committees on the Bankruptcy Law and prevention of undue harassment by state authorities, according to a press release.
The meeting was attended by PM’s Coordinator Rana Ehsan Afzal, representatives from the Pakistan Business Council, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), various chambers of commerce, the Anti-Money Laundering authority, and other stakeholders.
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The committees proposed amendments to the Corporate Rehabilitation Act, 2018, including the removal of eligibility thresholds based on receivables, a formal mechanism for stay orders through judicial directives, relief for companies facing winding-up orders, inclusion of companies availing relief under SBP Circular No. 29, and a comprehensive system for asset valuation and mediation.
The Corporate Restructuring Companies Act, 2016, was also reviewed, with the committee noting that the Corporate Rehabilitation Board’s operations have been delayed due to stringent appointment criteria and budgetary constraints.
Khan said the reforms will encourage banks and borrowers to work together under a collaborative framework.
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The subcommittee on undue institutional harassment also proposed a legal framework to protect the autonomy of the SECP and promote foreign investment through a non-political, interference-free environment.
“Prime Minister Shehbaz Sharif’s vision is clear: to revive sick industrial units and eliminate undue harassment from state authorities,” Khan said, praising the sub-committees’ work and commitment to business-friendly reforms.
