Pakistan to establish its first corporate restructuring company
- By Abdul Qadir -
- Jan 08, 2020
ISLAMABAD: Prime Minister Imran Khan has taken one more step towards economic development as the federal government decided to establish Pakistan’s first corporate restructuring company, ARY News reported on Wednesday.
The upcoming entity, Pakistan Corporate Restructuring Company Limited (PCRCL), will be established with the assistance of 10 domestic banks with an initial paid-up capital of Rs500 million. The company aims to create employment opportunities through the revival of distressed entities in the country.
The initiative taken under the Corporate Restructuring Companies Act will increase the economic growth rate after the establishment of PCRCL. The new entity will ‘acquire, manage, restructure, resolve Non-Performing Assets (NPAs) of Financial Institutions and reorganize and revive the commercially and financially distressed companies’, read the notification.
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It further said that the domestic banks 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 and Faysal Bank Limited.
PCRCL is being considered as a vibrant economic agent to revitalise the sustainable distressed entities and rehabilitation of sick industrial units.
The efforts the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) were appreciated by the federal authorities in facilitating the investor banks in processing of request for incorporating and licensing of PCRCL.
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It is noteworthy to mention here that SECP had notified the enactment of Corporate Restructuring Companies Rules 2019 in November last year which paves way for the institutional arrangements and legal actions by the federal government under the Corporate Restructuring Companies Act 2016 for the revival of financial distressed companies.