ISLAMABAD: A meeting of the National Assembly Standing Committee on Finance and Revenue, Thursday unanimously approved the ‘Corporate Restructuring Companies (Amendment) Bill, 2020’ following detailed discussion and briefing by the State Bank of Pakistan (SBP).

The meeting presided over by Faiz Ullah discussed the “Corporate Restructuring Companies (Amendment) Bill, 2020” as SBP deputy governor Jameel Ahmed, president Bankers Association, and Muhammad Aurangzeb apprised the committee about the requirements of the legislation.

The SBP deputy governor also responded to apprehensions of the committee members with regard to its implementation. The meeting was informed that the NPL has increased to Rs829 billion loans with Rs638 billion more than one year old and a trust is being established through the company.

The meeting was informed that 10 banks have signed agreement and had nothing to do with the international financial institutions and was taken envisaged to meet the domestic needs.

In the last meeting of the finance committee, legislation was proposed for better management of the non-performing loans (NPL) and revival of sick units and on the request of the members, the secretary finance told the meeting that the stakeholders and the industry would equally benefit from the CRC Amendment Bill, 2020, with better management of the NPL. The proposed legislation is beneficial for the industry as well as stakeholders as it would provide financial support for the revival of sick units. Aisha Ghuas Pasha said, “of course, this is a very good concept but the committee required some details before the legislation is passed.” She added that the committee members needed some more details for their satisfaction.

Hina Rabbani Khar said one company would provide loans for the revival of sick units, and inquired whether there would be a guarantee that the sick units would be revived.

Qaiser Ahmed Shaikh said this is an important bill for the companies, and there is a need to invite stakeholders, and suggested that there should be consultation with the bank association and the business community.

We are not opposing this legislation but want to improve it, Shaikh added.

The meeting was attended by Amjid Ali Khan, Makhdoom Syed Samiul Hassan Gillani, Faheem Khan, Dr Ramesh Kumar Vankwani, Qaiser Ahmed Sheikh, Ali Pervaiz, Dr Aisha Ghaus Pasha, Nafisa Shah, and Hina Rabbani Khar.

Senior officers from Ministry of Finance, SBP and SECP also attended the meeting.

Copyright Business Recorder, 2021