Finance Minister reaffirms commitment to strong insolvency framework for economic growth

Finance Minister Muhammad Aurangzeb reaffirmed the government’s commitment to establishing a strong insolvency framework to encourage investment, foster growth, and protect creditors.

According to a report by Business Recorder on Friday, Muhammad Aurangzeb stated during a stakeholder consultation on insolvency and debt enforcement organized by the Securities and Exchange Commission of Pakistan (SECP) that the currency will be determined by market forces and that the era of dictating the country’s position is over.

The event was attended by international delegates, Justices from all High Courts, lawyers, regulators, and policymakers. The minister underscored the importance of a solid insolvency framework for economic stability and improved debt resolution. He emphasized the government’s focus on fostering a business-friendly environment.

Aurangzeb discussed steps to advance the economy, expressing support for a working group while highlighting the need for private sector collaboration with SECP to drive progress, with the Ministry of Finance providing policy guidance and continuity. He stressed that the private sector must take the lead, with the government offering the necessary framework.

Regarding insolvency and debt resolution, he explained that the framework would enhance access to credit and finance while providing systematic solutions for those facing difficulties.

Aurangzeb urged banking professionals to prioritize revival efforts, stressing the importance of distinguishing between willingness and ability to pay. When willingness is lacking, it becomes a significant issue, while ability issues should prompt bankers to collaborate with management and sponsors to explore recovery options without resorting to legal actions.