September 13 , 2017
Senate passes Corporate Rehabilitation Bill 2017
ISLAMABAD: The Senate has passed the Corporate Rehabilitation Bill 2017. Minister for Law Zahid Hamid moved the bill.
PPP Senator Saleem Mandviwalla also supported the bill, saying that the standing committee had conducted extensive deliberations on it. He proposed certain amendments to it, which were accepted.
The existing institutional arrangements and legal process for revival and rehabilitation of distressed companies are both inadequate and time consuming. Efforts in the past have been made largely on said law, which resulted in imbalance of legal remedies for rehabilitation of debtors and protection of creditors. Therefore, a comprehensive legal framework is urgently needed to rehabilitate the distressed companies and businesses in the country.
The bill is a part of extensive legislative plan being made for restructuring and rehabilitation of distressed and sick corporate entities with consensus of all relevant stakeholders. The first part of the legislation, which is titled as "Corporate Restructuring Companies Act, 2016" was enacted on July 1, 2016. It provides mechanism for rehabilitation of the distressed companies, which is the need of the hour for sustainable growth of the corporate sector. Its salient features include specification of High Court for rehabilitation of distressed companies, extensive plan of rehabilitation in relation to debtor, petition can be filed by qualified creditors and debtors for order of mediation and the appointment of insolvency experts to mediation through sole mediators or joint mediators appointed by the court.
Meanwhile, the Senate was informed that twenty-one agreements and memorandums of understanding have been signed with different countries to enhance exports of the country during the last five years.
To a question during question hour, Defence Minister Khurram Dastgir informed the House that prime objective of these agreements is to search new international markets for Pakistani products.
He said agreements have been signed with Sri Lanka, Indonesia, Japan, China, Turkey, the US, Saudi Arabia, Turkmenistan, Tajikistan, Belarus, India, Azerbaijan and Vietnam. To a question, Minister for Information Technology Anusha Rehman informed the House that several projects have been launched in Khyber Pakhtunkhwa and Balochistan to provide broadband internet services under sustainable development project.
She said four computer labs have been established in Sweet Homes in four districts of Khyber Pakhtunkhwa.
She said similar labs have also been established in the Women Empowerment Centres in twenty-three districts of the province.
To a question, Minister for Parliamentary Affairs Shaikh Aftab said the government is making vigorous efforts to revamp Pakistan International Airline.
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