NA passes bills on bank loan recovery, Pakistan Airports Authority reforms

The National Assembly of Pakistan has passed the Financial Institutions (Recovery of Finances) Amendment Bill, 2026 and the Pakistan Airports Authority (Amendment) Bill, 2026, to strengthen loan recovery laws and revise the governance structure of the Pakistan Airports Authority.

Both bills were tabled separately in the lower house of Parliament and passed by majority vote.

According to the statement of objects and reasons, the Financial Institutions (Recovery of Finances) Amendment Bill, 2026 aims to strengthen Pakistan’s legal framework for recovery of bank loans and enforcement of mortgage rights.

The bill introduces procedural changes intended to improve transparency and efficiency in recovery proceedings while protecting bona fide leaseholders and limiting misuse of injunctive relief in Banking Courts.

It also authorises financial institutions to seek assistance from authorities to take possession of mortgaged properties, provides legal protection for actions taken in good faith, and increases penalties for certain violations.

The government said the amendments were intended to balance the rights of lenders and borrowers, improve recovery of defaulted loans and strengthen the country’s credit environment.

The Pakistan Airports Authority (Amendment) Bill, 2026 seeks to align the authority’s legal and administrative structure with the institutional changes following the merger of the Aviation Division into the Defence Division in February 2025.

Under the amendments, another senior officer from the Defence Division will be included on the Pakistan Airports Authority Board.

The bill also introduces a mechanism allowing decisions through circulation during emergencies when board meetings cannot be convened on short notice, subject to higher majority approval requirements.

In addition, the amendment replaces representation of the Finance Division on the Executive Committee with representation from the Defence Division and includes the Director of Finance of the authority on the committee.

The bill further proposes relaxing eligibility criteria for appointment of the Director General of the Pakistan Airports Authority by allowing candidates from the private sector alongside public servants, with detailed qualifications to be specified through rules.