For the first time in history, 10 Pakistani Banks take unprecedented decision to revive Pakistani economy
KARACHI: For the first time in history, 10 Pakistani Banks take unprecedented decision to revive Pakistani economy.
In a bid to revive sick industrial units,10 banks of the country signed an agreement to establish Pakistan Corporate Restructuring Company Ltd (PCRCL) the other day.
The Securities and Exchange Commission of Pakistan (SECP) granted license to the PCRCL on Dec 31, 2019. Under the provisions of Corporate Restructuring Companies Act 2016 with an initial paid-up capital of Rs500 million, the banks the other day decided to establish the Corporate Restructuring Company (CRC) which will be first of its kind in the country.
The shareholder agreement was signed by presidents and representatives from Habib Bank, National Bank of Pakistan, United Bank, MCB Bank, Allied Bank, Meezan Bank, Bank Alfalah, Bank Al-Habib, Habib Metropolitan Bank and Faysal Bank at the State Bank of Pakistan (SBP) headquarters.
The CRC will help the government revive sick industrial units.
The CRCs, under the CRC Act 2016, are empowered to acquire, restructure and resolve the non-performing assets (NPAs) of financial institutions and thereby reorganise and revive commercially or financially distressed companies.