Pakistan to set up first corporate restructuring firm

ISLAMABAD: Prime Minister Imran Khan on Wednesday took another step towards economic development, as the federal government decided to build Pakistan’s first corporate restructuring company.

The incoming organization, Pakistan Corporate Restructuring Company Limited (PCRCL), will be formed with the funding of 10 domestic banks with an initial Rs500 million paid-up capital, the company aims to create employment opportunities through the rehabilitation of distressed companies in the country.

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According to the notification, the initiative under the Corporate Restructuring Companies Act will increase the rate of economic growth after the establishment of PCRCL.

The new entity will ‘ acquire, manage, restructure, resolve Non-Performing Financial Institutions Assets (NPAs) and reorganize and revive commercially and financially distressed companies’.

It further claimed that 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 are domestic banks.

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PCRCL is considered a vibrant economic force to revitalize the distressed institutions and rehabilitate disabled manufacturing units.