20000219

Govt considering debt

equity swap among other options

to revive sick units

ASHRAF KHAN

KARACHI: The government is considering various options, including debt equity swap of sick industrial units, in its efforts towards their revival.

Abu Shamim Arif, Secretary Ministry of Production and Industries, on Friday said these options are under consideration of various committees and sub-committees for the sick units revival.

Accordingly, loan rescheduling, debt equity swap, financial restructuring, financial engineering; appointment of administrators under section 295 of the Companies Ordinance 1984; declaration of companies as sick under section 296 of the Companies Ordinance 1984, and change of management/sale of projects to more experienced and liquid entrepreneurs would be part of the policy.

He said that the government was emphasizing greater participation of stake holders in developing the industrial base of the country.

Talking to a group of journalists during tea-break at a seminar, Abu Shamim said the government has adopted a participatory role for the development of industrial growth strategies and action plans whereby representation from all sectors and sub sectors was being invited to contribute in the formulation of sectoral/sub-sectoral industrial plan for 2000-05.

In order to improve industrial mechanism, major industrial support institutions like Board of Investment (BoI), and Smeda and EDB have been placed under the control of Ministry of Industries and Production to improve their efficacy.

Moreover, National Productivity council (NPC) is being established under the aegis of Asian Productivity Organization (APO) of Japan to seriously enhance the quantum of productive activities in Pakistan through improved technology, quality and manpower training with active support of the private sector.