Lahore: Prime Minister (PM) Imran Khan recently directed the federal government to formulate a proposal for setting up the Pakistan Corporate Restructuring Company Limited (PCRCL) — an initiative aimed at uplifting the country’s economy and generating employment opportunities, a news source reported.
According to the information available, the government will allocate initial capital worth PKR 500 million to establish the project. PCRCL will rehabilitate sick units and take measures for generating economic growth. Officials concerned will develop a complete framework for the maintenance and reorganisation of the sick units.
Meanwhile, sources revealed that the government remained committed towards improving the country’s banking system. It is expected to collaborate with the State Bank of Pakistan (SBP), Securities & Exchange Commission of Pakistan (SECP), and other relevant agencies in this regard. It aims to facilitate investor banks in processing requests for incorporating and licensing of PCRCL.
According to a government notification, the state will set up PCRCL with the assistance of 10 domestic banks — under the Corporate Restructuring Companies Act. The notification added that PCRCL will acquire, manage, restructure, resolve non-performing assets (NPAs) of financial institutions, and help reorganise and revive these financially and commercially distressed business entities.