The Senate Standing Committee on Finance has expressed concern over expected considerable increase in circular debt after the energy projects of the China-Pakistan Economic Corridor (CPEC) become operational.
The issue of circular debt sprang up during the meeting of Senate Standing Committee on Finance, which was chaired by Senator Saleem Mandviwalla.
The meeting was given a briefing by National Bank of Pakistan (NBP) about opening of its branch in China. “We have also opened CPEC desk and submitted an application to the Chinese government on Wednesday to open a branch in China,” said Masood Ahmed Sheikh, officiating officer of the NBP.
“China Bank will also open a branch in Pakistan in March or June this year,” said chairman of the committee, adding that Pakistan has allowed permission to the Bank of China to open its branch in Pakistan for CPEC project. Committee member Nasreen Jalil said there would be a significant increase in circular debt when the energy projects would become operational. The members of the committee agreed to her apprehension.
Meanwhile, National Assembly’s Standing Committee on Finance has approved Companies Ordinance Bill, 2016 after a report of the subcommittee headed by Daniyal Aziz was submitted to the main committee.
The members included Mian Abdul Mannan of Pakistan Muslim League-Nawaz (PML-N), Asad Umar of Pakistan Tehreek-e-Insaf (PTI) and Naveed Qamar of Pakistan Peoples Party Parliamentarians (PPPP), while Dr Nafisa Shah of PPPP was special invitee to the subcommittee.
The report of the subcommittee was presented by Mian Abdul Manan, and it was highlighted that the matter related to the powers of government to remove the chief executive of a state-owned enterprise couldn’t be settled. The same clause was raised in the meeting by Dr Nafisa Shah, who said that powers to remove a chief executive of any public sector company should be with the board as the majority of the directors belongs to the government.