Govt moves to reform bankruptcy law

Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan has said the proposed bankruptcy law will serve as a comprehensive and supportive legal framework aimed at ensuring industrial stability and reviving struggling enterprises. He made these remarks while chairing a high-level meeting of sub-committees tasked with reviewing the bankruptcy law and addressing undue harassment by state authorities. The committee recommended substantial amendments to the Corporate Rehabilitation Act 2018, including the removal of the eligibility threshold based on receivables and the introduction of a formal mechanism for judicial stay orders. It also proposed relief for companies facing winding-up orders and inclusion of firms benefiting from the State Bank of Pakistan’s Circular No. 29.