Finance Minister Muhammad Aurangzeb reiterated the government’s dedication to building a robust insolvency framework aimed at boosting investment, supporting economic growth, and protecting creditors.
Speaking at a stakeholder consultation on insolvency and debt enforcement organized by the Securities and Exchange Commission of Pakistan (SECP), Aurangzeb emphasized that the country’s currency value would be determined by market forces, signaling an end to the era of controlling the currency’s position.
The event, attended by international delegates, judges, lawyers, regulators, and policymakers, highlighted the importance of a solid insolvency framework to enhance economic stability and streamline debt resolution. The minister stressed the government’s commitment to creating a business-friendly environment, which is crucial for the country’s economic progress.
Aurangzeb expressed strong support for collaboration between the private sector and SECP, with the Ministry of Finance providing policy guidance. He underscored that the private sector should take the lead, while the government will provide the necessary regulatory framework.
Addressing insolvency and debt resolution, he noted that the framework would improve access to credit and offer structured solutions for those facing financial difficulties.
Aurangzeb also called on banking professionals to prioritize efforts to revive distressed businesses. He emphasized the need to differentiate between a borrower’s willingness and ability to repay. When willingness is lacking, it becomes a major issue, but for those struggling with ability, he encouraged bankers to explore recovery options through collaboration rather than immediately resorting to legal actions.
