SECTION Q - NEW DEVELOPMENTS

(a) Are there any recent, imminent or proposed legislative, administrative, or practical reforms or developments or proposals in the legal system of this country which impact upon the matters mentioned above?

To our general knowledge, there is no public acknowledgment by the Government of any such proposal. However, as mentioned earlier in the Report, in respect of Rehabilitation of companies owning sick industrial units, "The Companies (Rehabilitation of Sick Industrial Units) Rules, 1999" ("1999 Rules"), have been notified by SEC. The purpose of the 1999 Rules is for the constitution and establishment of a 'Task Force' to be known as the "Task Force for Revival of Sick Industrial Units to exercise jurisdiction and powers and to discharge the functions and duties conferred by Section 296 of the Companies Ordinance or under the proposed 1999 Rules. The 1999 Rules also provide for a "Bankers Committee" constituted by the State Bank of Pakistan comprising heads of banks and financial institutions to implement the recommendations of the State Bank of Pakistan coordination committee relating to the revival of sick units. Where in the opinion of the Bankers Committee, a company owning an industrial unit is facing financial or operational problems, it is to make a report to the Task Force. If after examining the report of the Bankers Committee and such other evidence as it may like to call for, the Task Force is of the opinion that the company is a sick unit, it is to make a reference to the Federal Government.
If after examining the report of the Bankers Committee and reference from the Task Force, the Federal Government is of the opinion that the company is a sick company, it may declare the company to be a sick company within Section 296 of the Companies Ordinance, (i.e. facing financial or operational problems).
Under the 1999 Rules, where the Federal Government has declared a company as a sick company, it is to ask the Task Force to prepare a plan for the rehabilitation. The Task Force is to prepare a rehabilitation plan in accordance with the provisions of Section 296 of the Companies Ordinance and submit it to the Federal Government for approval. The Task Force with the approval of the SEC, is to determine the parameters for declaring a company as a sick company and prescribe its own procedures for calling and conducting its meetings. The parameters determined by the Task Force may specify and segregate the financial and/or operational problem on the basis of which an industrial company may become sick.
Under the 1999 Rules, the Task Force may on such terms and conditions as it may deem fit, employ and pay any consultant and agent and technical, professional and other advisors, including bankers, stock brokers, surveyors, valuers, accountants, acturaries, lawyers and other persons to assist it in the performance of its functions or for the better implementation of the purposes of the 1999 Rules.