Karachi-The Advisor to Prime Minister on Finance, Shaukat Tarin, has announced that bankruptcy law would be introduced in the country in the current quarter. He was briefing media about his meeting with bankers, held at NBP head office, during his visit to Karachi Stock Exchange (KSE). He said that work on bankruptcy law was in progress and it would be effective soon in this quarter.

He said that liquidation law is available, but there was no bankruptcy law in the country to deal with voluntary bankruptcy cases. Briefing about his meeting with bankers, the Adviser said that he has asked the banks to help out the industry for its revival in troubled times. He said that all banks had made money from industry.

Now, the banks must help it to come from current problems, when the industry is in trouble and needs financial help from bank", he added. He admitted that the banking sector is also under pressure. However, he said that banks were less affected. Although a negative growth has been witnessed in the profits of banking sector, the banks are still less affected and are gainers", he added. He said that keeping in view that the banking sector's growth is also based on the growth of whole industrial sector; the banks must help the industry for its revival.

About the issue of non-performing loans (NPLs), he was optimistic that the issue would be resolved with improvement in the market. He said that the banking sector was robust enough to absorb such shocks. He pointed out that the banks have agreed to arrange payment for rental power projects. Regarding resettlement of internally displaced people (IDPs), Tarin said that the government has planned to adopt 3Rs (relief, rehabilitation and reconstruction) strategy for the resettlement of affected citizens.

He pointed out that the inflows of financial assistance from donors have started in the country. He said that according to the assessment of international donor agencies at least $2.5 billion would be required for resettlement of IDPs. The first conference for the IDPs was held last month and the inflow of funds from the Friends of Pakistan has started. He said that the EU has approved $150 million while the US has announced $320 million for the IDPs.

On another question, the Advisor said that the government was not considering any increase in power tariff. He was of the view that power tariff should not be increased as long as load shedding continued.