Government Introduces Bankruptcy Law to Aid Businesses
- Fahad Bin Khalid
- March 19, 2025
- 4:34 pm
- 39
- Business
Pakistan Bankruptcy Law for Businesses to Support Economic Growth
The Pakistan bankruptcy law for businesses will provide struggling companies with financial relief and support industrial growth. Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, announced the new law at the Lahore Chamber of Commerce and Industry (LCCI). He assured that the government would consult business leaders before taking any regulatory actions.
Reducing Bureaucracy for Business Growth
Khan criticized excessive bureaucracy, stating that 29 departments regulate industries, making business operations difficult. He recalled that India’s former Prime Minister, Manmohan Singh, praised Pakistan’s economic policies in 1993. He emphasized that long-term strategies are essential for industrial success.
Economic Indicators Show Positive Trends
Pakistan’s markup rate has dropped from 22% to 12%, and the stock market is performing well. However, Khan believes that the government must focus more on GDP growth and industrial expansion.
Pakistan remains engaged with the International Monetary Fund (IMF), but Khan praised the Prime Minister for lowering electricity costs. He also expressed hope for further interest rate reductions.
Encouraging Investments from Overseas Pakistanis
To attract investment, Khan proposed incentives for overseas Pakistanis to bring back their declared assets worth $30 billion. He emphasized that such measures would strengthen Pakistan’s economy and create more job opportunities.
Concerns from Business Leaders
LCCI President Mian Abuzar Shad raised concerns about rising gas, electricity, and petrol prices. He urged the government to lower interest rates and reduce industrial land prices, which currently hinder business expansion.
He also suggested:
- Promoting local vehicle assembly to boost manufacturing.
- Reducing taxes on raw materials to lower production costs.
- Creating Special Economic Zones (SEZs) to encourage industrial growth.
Final Thoughts
The Pakistan bankruptcy law for businesses aims to help struggling companies and support industrial growth. The government plans to reduce bureaucratic hurdles and encourage foreign investments. Business leaders hope for lower costs and better policies to drive economic recovery.
