In this insightful address at the SECP’s Insolvency & Debt Management Consultation, Finance Minister Muhammad Aurangzeb emphasizes the importance of prioritizing rehabilitation over winding up for businesses facing financial distress.
He highlights a multi-layered approach to tackling credit challenges at the macroeconomic, industry, and entity levels, ensuring resilience across all sectors. Emphasizing the importance of a systematic debt resolution framework, the Minister advocates for an enabling environment that provides fair access to finance and supports businesses in navigating economic cycles effectively.
A key focus is on distinguishing between willingness and ability to pay debts, urging financial institutions to prioritize reviving struggling entities over immediate legal recourse. This approach aims to foster long-term growth while minimizing unnecessary insolvencies.
