Amendment in Secured Transaction Act-2016 to enhance easy access to credit by SMEs: Razak Dawood

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From Business Correspondent

ISLAMABAD: Adviser to the Prime Minister for Commerce and Investment Abdul Razak Dawood yesterday said the recent amendment in the Secured Transaction Act-2016 would help in operationalizing e-registry of movable and immovable assets which would in turn enhance easy access to credit particularly by Small and Medium Enterprises (SMEs). These amendments would also be instrumental in improving Pakistan’s ranking in “getting credit” indicator by more than 20 positions in the World Bank’s ease of doing business report, said a press release issued by the Ministry of Commerce here.

The adviser said the recent amendments in companies act 2017 would lessen the administrative burden on businesses. He said this would also impact the two indicators in our ease of doing business ranking, first on starting a business and second protecting minority investors.

He said the function of Secured Transaction Registry (STR) had been established at the Securities and Exchange Commission of Pakistan (SECP). The registry would record charges/security interests created by entities on their movable assets. Now, the financial institutions (Secured Transactions) Act, 2016 enacted to provide an integrated legal framework for creation of security interest over movable assets besides providing for establishment of a secured transactions registry for unincorporated entities, he said.

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