Revival of sick industrial units: 'corporate restructuring act' being drafted, says Tarin

Federal Minister for Finance Shaukat Tarin has said that the government was drafting Corporate Restructuring Act for revival of the sick industrial units and establishing a 'Resolution Trust Corporation' based on public-private partnership to settle down the financial disputes.
Addressing the business community at Faisalabad Chamber of Commerce and Industry (FCCI), he said that debt market would be created through equity funds to be registered in stock exchanges for meeting the financial requirements of business community as well as loans at lower mark up directly from private sector to private sector.
The minister said that the government was taking up the matter of free access to the EU and US markets at every forum, saying the government has emphasised on 'trade but not aid.' However, he urged the business community to explore non-traditional market like Central Asian Republics, Russia and Africa etc.
Regarding promotion of SMEs sector, the minister said Credit Guarantee Fund and Venture Capital Fund have already been introduced by SBP and the government has earmarked Rs 10 billions for this purpose. He said that preferential treatment regarding the supply of gas and electricity will be ensured for industrial sector.
He discouraged the cross subsidy to other specific sectors like fertiliser on the cost of other manufacturing sector. Regarding VAT, he assured that the whole business community would be taken into confidence for implementation and nothing would be practised without their consultation. He hoped the government would succeed in bringing the inflation to single digit in near future.
Regarding the extraordinary audits he said that five percent companies would be selected at random and third party audit would carried out. Federal Minister for Textile Rana Farooq Saeed Khan appreciated the Finance Minister for briefing the audience about the latest reforms being carried out by the federal government for the betterment of business community.
Earlier, Sh. Abdul Qayyum, President FCCI while presenting welcome address appreciated the practical approach of the Federal Finance Minister due to which he brought down the inflation rate from 22 to 10.7 percent. He underlined the need of implementation of the whole Textile Policy in true letter and spirit. He demanded of the government to provide electricity and gas to the industrial units on priority basis.
He opposed the proposed value added tax system likely to be implemented by the FBR and said that the business community should be taken into confidence before it implementation. The FCCI President also demanded of the government to halt the extraordinary audits being carried out by the tax officials. He said there is a dire need to upgrade the Faisalabad Airport on international standards and the direct Hajj and Umraf flights be started forthwith.
Regional Chairman and Vice President FPCCI Mian Muhammad Adrees presented vote of thanks. At the end of the programme FCCI shields were presented to the guests. The meeting was attended by businessmen, officials and executive committee members of FCCI.