Karachi – Muhammad Noman Saigal Former Minister Information Technology, Health and Environment and Chairman Standing Committee on Communication (FPCCI ) said strengthening the banking sector bankruptcy Law is practiced globally to provide comfort level to the business community. But in Pakistan the essential component is not associated in this regard. The end-user and any client who defaults the loan is not given any leverage and the decision is always one sided. Instead giving comfort to the client the financial support taken becomes a critical liability of an individual or any company damaging the health and the group itself within a span of 24 months or less. As the interest rate is highest and in Pakistan is not workable at all as per the business returns of any company per annum. The profits are usually at the tune of maximum 10% per annum earned by various companies in the world. When it comes to 18% or goes up to 20% plus, with an interest rate of 36% per annum on credit cards in Pakistan one ends up in a loss instead of gaining any thing.
The threatening attitude of the bank makes things impossible for any customer of the bank detoriates the health and the business of the customer. When he wants to declare Bankruptcy or cannot pay the dues or given any relief in terms of Bankruptcy to declare him bankrupt which is an individual practice to give relief to individual who could not pay back globally. One can take the example of recession took place a few years back hitting the world very hard, those countries had an edge which had liberal banking laws and specially supportive cover in the banking sector for the clients where those banks survive but countries like UAE and Pakistan suffered the worst hit.
On the other hand industries have been transferred to small countries like Bangladesh and Srilanka. The economy of Pakistan is going down every year. The banking sector has declined. To provide relief and to allow the businessmen to re-establish , the bankruptcy law is essential for the banking sector as per the constitutional binding of the country.
BY : Muhammad Noman Saigal
Chef Executive N. S. Group
Former Minister for Health, Environment & Information Technology.
