Hi Guys Just starting a thread regarding one of the major issues that is faced by Pakistan and that either leads to bad debts for the bank or circular debt for power companies. I fail to comprehend why GOP and now PTI government to date has not attempted to bring in some form of Bankruptcy / Insolvency laws for both individuals and corporations. Historically we had many individuals and companies having their loan written off or that many companies and influential individuals have not paid for things such as usage of electricity, fuel purchase, air port charges (air blue) etc. This has lead to banks having large amount of bad debts which costs the economy billions and creates a situation of many institutions which are state owned thus either require bail out or increase in utility prices. Take recent examples such as Air Blue not paying CAA for airport usage and Hina Rubani Khar and her company having outstanding bill to WAPDA in the amount of about 20.7 million or what ever the amount. But the fact that she or her corporation owes money and she continues to enjoy supply of power. So it is fundamentally important we have proper bankruptcy and insolvency laws in place to recover these amounts and also provide people who are caught in bad situations a way out. The laws can be model on western version so to allow both a carrot stick approach. The laws will allow the creditor to either obtain a full payment or seek to have the individual bankrupt. IF a person or corporation is declared bankrupt it will allow the creditor - mostly banks and government institutions to appoint a administrator to take full control of the individual or corporation's assets with the intention to sell those to pay the creditors their full due and if any thing left over it can than be return to the original owner. Similarly law should require banks and state institutions to obtain personal guarantees of their directors and/or shareholders to ensure if the corporation are either deliberately made to default on the loans or other payment than those individuals can be held liable together with corporation. This should resolve the issue of bad debts and debt write offs and with the administrator appointed the administrator takes full control include all the books of the business would allow the administrator to make discovery of transactions to circumvent bankruptcy laws. In my opinion these laws are need of the hours and I am at absolute loss that we dont have them and if we do, it seems to be silent and non-existent. We are beating around the bush rather than cleaning it up. I am equally disappointed with law minister who promised allot but is yet to deliver on anything. What do you guys say? ----------------- PS: can we keep this discussion on the subject matter and not get into tussle of PTI v PMLN V PPP v whatever party.