Another initiative taken by the State Bank of Pakistan was to revive sick units which were lying closed due to unsustainable debt burden. Now these sick industries can be revived through a well designed and transparent scheme. If the loanees pay 75% of the forced sale value to the bank, then these units would be handed over back to the owners.
They can run the units and create employment opportunities. If it’s an export industry, it will increase exports. This scheme is for all and sundry, across the board and round about 51,000 borrowers will be benefiting from it. The banks will be able to clean up their balance sheets by transforming these stuck loans into paying loans.