The National Assembly Standing Committee on Finance and Revenue unanimously recommended that “The Corporate Restructuring Companies (Amendment) Bill, 2020,” maybe passed by the National Assembly.
The 54th meeting of the National Assembly Standing Committee on Finance and Revenue was held under the chairmanship of MNA, Faiz Ullah.
The Committee discussed “The Corporate Restructuring Companies (Amendment) Bill, 2020).” Deputy Governor State Bank of Pakistan (SBP), Jameel Ahmed, and President Bankers Association, Muhammad Aurangzeb, briefed the Committee about the requirements of the Bill. The Committee members have expressed their apprehensions regarding the implementation of this Act.
According to the objects and reasons of the proposed legislation, the existing institutional arrangements and legal processes for the revival and rehabilitation of distressed entities are time-consuming and inadequate, making the rehabilitation of distressed entities challenging.
Moreover, the existing Corporate Restructuring Companies Act, 2016 does not have provisions to facilitate Corporate Restructuring Companies (CRCs) to carry out their operations smoothly.
The Corporate Restructuring Companies Bill 2020, inter alia, will make the CRCs operate efficiently, acquire the Non-Performing Assets (NPAs) from the Financial institutions easily, raise funding for the acquisition of non-performing assets (NPAs) through segregation risks and rewards, and extend financing facilities for carrying out the purposes of the Act.
The Bill, considering the Government’s objective of reviving the distressed economic assets of the country, will also enable the CRCS to reach compromise with the distressed entities promptly.
The Deputy Governor State Bank of Pakistan responded to the questions raised by the Committee Members. After a detailed discussion, the Committee unanimously recommended that the said Bill may be passed by the National Assembly.
The meeting was attended by MNAs Amjid Ali Khan, Makhdoom Syed Sami-ul-Hassan Gillani, Mr. Faheem Khan, Dr. Ramesh Kumar Vankwani, Qaiser Ahmed Sheikh, Ali Pervaiz, Dr. Aisha Ghaus Pasha, Nafisa Shah, and Hina Rabbani Khar. The meeting was also attended by the senior officers from the Ministry of Finance, Minister of Law and Justice, State Bank of Pakistan, and Security Exchange Commission of Pakistan.