Executive Director State Bank of Pakistan (SBP) Syed Irfan Ali has said that all-out efforts would be made to revive the sick industrial units.
Addressing a zoom meeting with the owners of sick units held in Faisalabad Chamber of Commerce & Industry (FCCI) on Monday, he said that the government and all the financial institutions are serious for the revival of the economy in addition to creating maximum job opportunities for the bursting population coupled with threats of Covid-19.
Syed Irfan Ali told that according to him there are two possible solutions. One is to arrange the individual meeting of the owners of the sick units with their concerned loaning bank. Secondly, this issue could be taken up as collective up to the jurisdiction of Faisalabad. He asked the president FCCI Rana Sikandar Azam Khan to provide details of the sick units so that proper action could be initiated immediately.
Javaid Akhtar, Director Banking Policy & Regulation SBP, told that ten banks have constituted a Corporate Restructuring Company (CRC) with a mandate to revive the sick units. “This company is headed by Mr. Sarwar as its Chief executive. He offered to arrange a meeting with him so that the issues could be resolved amicably. “In this connection next zoom meeting with Mr. Sarwar of CRC will be held on July 23 at 12 Noon”, he said.
President FCCI said that most of the sick units are victims of unfavorable and harsh circumstances and we should not treat them like willful defaulters. He further said that these units had played a key role in national exports in addition to providing much-needed jobs to the unemployed youth. However, due to global meltdown, non-availability and uncompetitive tariff of gas and electricity as well as historically costlier interest rate of banks were the root causes of their closure.
Rana Sikandar told that he had vehemently pleaded their case in the previous zoom meeting with the Governor SBP and he had assured to chair a special meeting on this issue on Monday. He asked them (owners of sick units) to clearly identify the issues relating to other departments’ so that these problems could also be resolved simultaneously.
President FCCI said that he is also making efforts to get time from Mr. Abdur Razak Dawood, Advisor to the PM on Commerce to further supplement the revival efforts.
Chairman FCCI Standing Committee Mian Muhammad Latif told that that these issues are already in the notice of SBP and efforts are being made to settle down the issues at the highest level.
He further said that Prime Minister Imran Khan has also issued directions in this regard as the revival of sick units will help in enhancing national exports in addition to creating new job opportunities for the workers.
Mian Latif also mentioned the constitution of Restructuring Company which is also represented by nine major commercial banks. He said his company has successfully rescheduled their loans but the other sick units are still facing this problem.
The meeting was also attended by former minister Mr. Mushtaq Ali Cheema, Mr. Engr, Babar Shahzad, Mr. Khalid Habib, Mr. Muhammad Riwan and Muhammad Ziagham of Sandal Dyes stuff & Chemical Manufacturing.