Government to introduce bankruptcy law

LAHORE:

Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, has said the government is introducing a bankruptcy law to facilitate businesses, adding that reviving sick industrial units is a top priority.

Speaking at a meeting at the Lahore Chamber of Commerce and Industry (LCCI), Khan stated that take action against the business community without consulting the Chambers of Commerce, as restoring business confidence is crucial for economic growth. He stressed that the business community must be given the freedom to contribute to national development through industrialisation and investment. LCCI President Mian Abuzar Shad, Vice President Shahid Nazir Chaudhry, former President Muhammad Ali Mian, and former Senior Vice President Ali Hassam Asghar also addressed the gathering, with executive committee members present.

He pointed out excessive bureaucratic hurdles, noting that 29 departments are involved in regulatory processes, making it difficult for industries to operate efficiently. He highlighted that both Prime Minister Shehbaz Sharif and Deputy Prime Minister Muhammad Ishaq Dar had previously served as LCCI Presidents, strengthening the government’s ties with the business community.

Recalling past economic successes, Khan said that during Nawaz Sharif’s tenure as prime minister in 1993, Indian Prime Minister Manmohan Singh had praised Pakistan’s economic reforms. He stressed the need for similar policies and stressed policy continuity, citing China’s sustained development through consistent economic strategies.

He noted that the markup rate had declined from 22% to 12% and that the stock market was reaching new highs. However, he stressed the need for greater focus on GDP growth and industrialisation. While acknowledging Pakistan’s continued engagement with the IMF, he praised the prime minister’s success in reducing power rates and expressed optimism that the markup rate would decrease further.

He further stated that investors seek safe havens and that PM Sharif is keen to encourage local investors while attracting foreign investments. He proposed an incentive scheme for overseas Pakistanis to repatriate their declared assets worth approximately $30 billion.

The LCCI president described recent meetings with the PM as highly productive. He raised concerns about rising business costs due to increasing gas, electricity, and petrol prices. He stressed the need to bring the policy rate into the single-digit range and pointed out that industrial estate land prices, reaching Rs500 million per acre, were hindering expansion.

He proposed complete vehicle assembly in Pakistan and local raw material industry development with minimal duties. He called for establishing Export Promotion Sectoral Councils, new Special Economic Zones (SEZs), and a 20-year Industrial Master Plan.

LCCI Vice President Shahid Nazir Chaudhry urged the regularisation of industrial clusters and infrastructure development in Quaid-e-Azam Business Park. Former President Muhammad Ali Mian emphasised incorporating LCCI budget proposals into the federal budget, while former Senior Vice President Ali Hassam Asghar highlighted the rice sector’s export potential.