The Council of Islamic Ideology (CII) has observed that the facts regarding the "bankruptcy law" implementation must be made public by the State Bank of Pakistan (SBP). At the same time, unending secrecy over the statistics on loan write-offs may be lifted to enable the researchers to ascertain the facts, it was identified at 174th meeting of the Council concluded here.
The meeting was attended by 19 members, while Council Chairman Dr Muhammad Khalid Masud was in the chair. The members, after two-day long discussions, identified various issues for consideration in the following year. Regarding bankruptcy laws/loan defaults/write offs, the Council expressed its opinion that this issue had been raised very frequently at different forums in the newspapers.
However, it is generally politically motivated and therefore no serious attention is paid to it by the concerned quarters. On the other hand serious researchers and civil society in general find themselves constrained to look into the issue honestly and in-depth.
It observed that dialogue with experts in the financial sector point to one major serious flaw in the banking sector reforms in this regard. The non-implementation of the bankruptcy law despite the considerable success of the Prudential Regulations over time.
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