Business circles have demanded equal representation of all industrial sectors in the Committee on Bankruptcy Law instead of leaving it at the mercy of banking sector. The government has recently formed a committee on bankruptcy law with majority representation from the banking sector.
The sole representation from private sector, as stated by the business circles, is from All Pakistan Textile Mills Association (APTMA) whose chairman is member to the committee. Chairman All Pakistan Textile Association (APTA) Adil Mehmood pointed out to the Business Recorder that the APTMA was representing a single sector and no representation was from weaving, processing, garments, hosiery, chambers of commerce & industry and Federation of Pakistan Chambers of Commerce & Industry (FPCCI).
He said working on bankruptcy law was initiated by the former government of President Pervez Musharraf when a delegation of APTA agitated in front of the Prime Minister House on June 23, 2007. It was followed by referring the issue to the Senate Committee on Finance where working on bankruptcy law started. Mehmood added that first draft was sent to the APTA, which was amended accordingly and sent back to the government. However, no further development took place on the subject until the formation of PPP government in the centre, he said.
Mehmood said an equal representation of all industrial sectors would minimise lacunas to the proposed law. He said a single representative from the private sector in the committee would weak the position of industry in front of a group of bankers. According to him, the government should immediately revise the situation and ensure large-scale representation of industry to ensure a comprehensive bankruptcy law in the country.