‘Govt, financial institutions striving hard to revive struggling businesses’

SBP director says a Corporate Restructuring Company with the mandate to revive sick units has been constituted by ten banks

FAISALABAD: State Bank of Pakistan (SBP) Executive Director (ED) Syed Irfan Ali on Monday said that financial institutions and the government are making serious efforts to revive the sick industrial units.

The SBP executive director while addressing an online meeting at the Faisalabad Chamber of Commerce and Industry (FCCI) with owners of sick industrial units said that the government and all financial institutions are working towards reviving the economy and creating maximum employment  opportunities.

“One possible solution is to arrange an individual meeting of the owners of the sick units with the bank they have taken loan from. Secondly, this issue can also be taken up collectively in the jurisdiction of Faisalabad,” he suggested. 

He requested FCCI President Rana Sikandar Azam Khan to provide details of sick units so that proper action can be taken.

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SBP Director Banking Policy and Regulation Javaid Akhtar informed that ten banks have constituted a Corporate Restructuring Company (CRC) with a mandate to revive sick units. 

He further informed that an online meeting with the CRC chief executive will be held on July 23 in this regard.

President FCCI said that most of the sick units are victims of unfavorable and harsh circumstances due to Covid-19 and that banks should not treat them as willful defaulters. 

He further said that such units in the past had played a key role in contributing to Pakistan’s national exports in addition to providing much-needed jobs. However, due to the global recession, non-availability of gas, uncompetitive gas and electricity tariffs and high interest rates these units have been forced to close down. 

He said that he had previously also pleaded the case of these sick units in a meeting with the SBP governor who assured to chair a special meeting on this issue on Monday. 

He urged owners of sick units to clearly identify issues relating to other departments so that such problems can also be resolved simultaneously.

President FCCI said that he is making efforts to set up a meeting with the Advisor to the PM on Commerce Abdul Razak Dawood, to further supplement the revival efforts.

FCCI Standing Committee Chairman Mian Muhammad Latif said that that issues pertaining to sick units are already under SBP’s notice and efforts are being made to solve them. 

He further said that Prime Minister Imran Khan had earlier issued directions in this regard adding that the revival of sick units will help enhance national exports in addition to creating new job opportunities for the workers.

He also informed that his own company has successfully rescheduled its loans with banks.

The meeting was also attended by former minister Mushtaq Ali Cheema, Engineer Babar Shahzad, Khalid Habib and other business leaders. 

 

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