The federal government has planned to establish Pakistan’s first corporate restructuring company to boost economic growth and create employment opportunities.
Pakistan Corporate Restructuring Company Limited (PCRCL) will be established with the help of 10 domestic banks with an initial paid-up capital of Rs. 500 million. It will be tasked with the rehabilitation of sick units and a complete framework will be developed for their maintenance and reorganization.
The new company will “inter alia, acquire, manage, restructure, resolve Non-Performing Assets (NPAs) of Financial Institutions and reorganize and revive the commercially and financially distressed companies,” read the notification.
The initiative taken under the Corporate Restructuring Companies Act will increase the economic growth rate after the establishment of PCRCL.
According to the details, the domestic banks which will provide assistance include:
- Habib Bank Limited
- National Bank of Pakistan
- United Bank Limited
- MCB Bank Limited
- Allied Bank Limited
- Meezan Bank Limited
- Bank Al-Falah limited
- Bank Al-Habib Limited
- Habib Metropolitan Bank Limited
- Faysal Bank Limited.
The federal authorities appreciated the efforts of the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) in facilitating the investor banks in processing the request for incorporating and licensing of PCRCL.
The government is also working with the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP) and the banking industry to bring further improvements in the relevant laws and strengthening the functions of the banking courts.