Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan has said the proposed bankruptcy law will serve as a comprehensive and supportive legal framework aimed at ensuring industrial stability and reviving struggling enterprises.
He made these remarks while chairing a high-level meeting of sub-committees tasked with reviewing the bankruptcy law and addressing undue harassment by state authorities.
The committee recommended substantial amendments to the Corporate Rehabilitation Act 2018, including the removal of the eligibility threshold based on receivables and the introduction of a formal mechanism for judicial stay orders. It also proposed relief for companies facing winding-up orders and inclusion of firms benefiting from the State Bank of Pakistan’s Circular No. 29.
The meeting also suggested developing a structured framework for asset valuation and mediation, aimed at supporting distressed companies and streamlining recovery processes.
“This policy package will offer critical relief to affected companies,” said Mr Khan, reiterating that a reformed bankruptcy regime would be instrumental in stabilising Pakistan’s industrial landscape.
Further recommendations were made to amend the Corporate Restructuring Companies Act 2016, with participants noting that delays in operationalising the Corporate Rehabilitation Board were due to strict appointment criteria and financial constraints.
Read also: PSX surges past 145,000 mark in new high
