Govt to introduce bankruptcy law to support businesses

LAHORE: Special Assistant to the Prime Minister for Industries and Production Haroon Akhtar Khan has said that the government is introducing a bankruptcy law to facilitate businesses.

Speaking at a meeting at the Lahore Chamber of Commerce and Industry (LCCI), he said that reviving sick industrial units is a top government priority. He stressed that no institution should take action against businesses without prior consultation with the chamber and that the business community must be given the freedom to contribute to national development through industrialisation and investment.

Recalling past economic policies, Haroon Akhtar Khan noted that during Nawaz Sharif’s tenure as prime minister in 1993, his brother met then Indian prime minister Manmohan Singh, who had praised Pakistan’s economic reforms at the time. He urged the need to reintroduce similar policies, emphasising the importance of policy continuity, citing China as an example of a country that has achieved sustainable development through consistent economic strategies.

He pointed out that while the stock market is reaching new highs and the markup rate has declined significantly, there is still a need to focus on GDP growth and industrialisation under the International Monetary Fund (IMF) programme. He added that the Prime Minister has successfully reduced power rates while staying within the IMF framework and expressed optimism that interest rates would decrease further.

The prime minister, he noted, is keen to encourage local investors while attracting foreign investment. He also proposed an incentive scheme for overseas Pakistanis to repatriate their declared assets, estimated to be worth around $30 billion.

LCCI President Mian Abuzar Shad raised concerns over the rising cost of doing business due to increasing gas, electricity and petrol prices, as well as minimum demand indicator (MDI) charges on closed industrial units. While he acknowledged that the policy rate has been reduced to 12 per cent, he argued that it remains high compared to regional competitors. He also highlighted skyrocketing land prices in industrial estates, which have reached Rs500 million per acre, making industrial expansion increasingly difficult.