The State Bank of Pakistan Governor emphasizes over reforms in the country’s judicial system for timely hearing of the cases related to insolvency.
KARACHI: (UrduPoint/Pakistan Point News-March 20th, 2021) State Bank of Pakistan (SBP) Governor Reza Baqir said that a proper mechanism was required to address the issue of solvency in the country on Saturday.
Reza Baqir said that expertise were required in the country’s judicial system for hearing of the cases of corporate insolvencies.
He expressed these views while addressing a high-level panel discussion on Corporate debt in developing states.
Reza Baqir said that there was a big challenge in the way of Corporate sector owing to intricacies of the judicial system. He commented that cultural problem was another hurdle in the way of efficient system as the borrowers used strategic default to escape payments of loan.
“Corporate sector is of course can’t work if there is weak corporate governance and judicial system,” said Reza Baqir.
World Bank’s insolvency series were launched to improve understanding and finding ways to lead the economies to better position amid hovering threat of global pandemic.
The other experts also discussed the challenges including insolvency besides building regulatory structures to the COVID-19 crisis including insolvency and out-of-court workout mechanism.
Reza Baqir also asked the World Bank to play its role in reforming the judicial system to be able to hear cases of insolvencies by establishing special courts or benches and by using technology to timely hear and dispose of the pending cases.