The federal government is planning to develop the first corporate restructuring company in Pakistan. The aim is to boost economic growth and create employment opportunities.
With the help of 10 domestic banks, the Pakistan Corporate Restructuring Company Limited (PCRCL) will be established. The initial paid-up capital will be Rs. 500 million.
The task of the company will be to rehabilitate sick units and develop a complete framework to maintain and reorganize them.
The notification read that 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.”
After the establishment of the Pakistan Corporate Restructuring Company Limited (PCRCL) the initiative taken under the Corporate Restructuring Companies Act will boost the economic growth rate.
The Pakistani banks that will provide assistance as per the details are 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.
The efforts of the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) were lauded by the federal authorities. They have facilitated the investor banks in processing the request for incorporation and licensing of PCRCL.
Furthermore, the government is working with the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP) and the banking industry to improve the laws and strengthen the functions & operations of the banking courts.