Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan on Wednesday said that proposed reforms to Pakistan’s bankruptcy legislation would serve as a comprehensive and supportive legal framework to ensure industrial stability and the revival of struggling enterprises.
He made the remarks while chairing a high-level meeting of sub-committees on bankruptcy law and the prevention of undue harassment by state authorities, according to an official statement.
The meeting brought together Prime Minister’s Coordinator Rana Ehsan Afzal, officials from the Pakistan Business Council, Federal Board of Revenue, State Bank of Pakistan, Securities and Exchange Commission of Pakistan, various chambers of commerce, the Anti-Money Laundering authority, and other relevant stakeholders.
Participants reviewed proposed amendments to the Corporate Rehabilitation Act, 2018. These include eliminating eligibility thresholds based on receivables, introducing a formal stay order mechanism through judicial directives, providing relief for companies facing winding-up orders, and including firms receiving support under SBP Circular No. 29. The proposals also call for the establishment of a structured system for asset valuation and mediation.
The Corporate Restructuring Companies Act, 2016 was also discussed. Officials noted delays in the operations of the Corporate Rehabilitation Board, citing strict appointment criteria and limited budgetary allocation as contributing factors.
Khan said the proposed changes would encourage financial institutions and distressed firms to cooperate in good faith under a collaborative framework. He added that the government’s aim is to build investor trust through long-overdue legal reforms.
The second subcommittee, focusing on institutional harassment, proposed legislation to safeguard the autonomy of regulatory bodies such as the SECP and promote foreign investment by ensuring a non-political, interference-free business environment.
“Prime Minister Shehbaz Sharif’s vision is clear: to revive sick industrial units and eliminate undue harassment from state authorities,” Khan said, commending the committees for their work in creating a more business-friendly climate.
