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In a key policy development, the government has taken steps to introduce a bankruptcy law in Pakistan, aiming to improve the investment climate and revive struggling industries in line with the Prime Minister Shehbaz Sharif’s economic vision.
Under the chairmanship of Special Assistant to the Prime Minister Haroon Akhtar Khan, a high-level committee convened to deliberate on legal reforms that could align Pakistan’s business environment with global standards. The introduction of a bankruptcy law in Pakistan topped the agenda, with a strong emphasis on restoring investor confidence and ensuring financial stability for local and foreign businesses.
A sub-committee was formed to draft proposed amendments to the Corporate Rehabilitation Act 2018. This team includes renowned legal experts Ali Sibtain Fazli and Abid Shaban, SECP Commissioner Muzaffar Mirza, and financial consultant Usman Khan. The revised draft of the law is expected to be finalized and presented on June 13, 2025.
Haroon Akhtar Khan highlighted that the updated bankruptcy law in Pakistan will serve as a cornerstone for industrial growth, helping reduce legal hurdles faced by businesses and attracting more foreign direct investment (FDI).
Session on Revival of Sick Industrial Units
Separately, Khan also chaired a session focused on the revival of sick industrial units, held under the guidelines of State Bank of Pakistan’s Circular 29 of 2002. He reiterated the government’s dedication to reviving non-functional industrial assets, which are crucial to economic recovery.
New financial rehabilitation strategies were reviewed during the meeting, with plans to issue updated guidelines benefiting both banks and industrialists. The discussion also addressed the financial status of sick units and explored comprehensive revival measures.
These efforts, aligned with broader legal and financial reforms, underline the government’s commitment to creating a favorable investment and business environment in Pakistan. The dual focus on a robust bankruptcy law and industrial revival signals a strategic shift towards sustainable economic development.
