NA unanimously passes the Credit Bureaus Bill, 2015 which provides comprehensive legal and regulatory framework for credit bureaus in Pakistan and provides platform for accuracy in risk prediction
The National Assembly was informed Wednesday that the first shipment of 60,000 tonnes of imported LNG is reaching Pakistan on Thursday (today).
While responding to a call attention notice, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi told the House that the imported LNG from Qatar will flow into the system on the 31st of this month.
The minister said the LNG price agreement is still being negotiated between the Qatar Gas and Pakistan State Oil. However, he assured the House that the LNG will be imported at the most competitive price and transparent manner. He said the gas price whenever finalised will be shared with the Parliament and other appropriate forums. He said world class terminal has been constructed at a record time to handle the imported LNG.
The minister said the primary recipient of the imported LNG will be the power sector and it will provide an advantage of $ 300 million to the power sector as compared to the liquid fuel.
CREDIT BUREAUS BILL, 2015:
Moreover, the National Assembly Wednesday unanimously passed the Credit Bureaus Bill, 2015 aiming to stabilise financial system and contribute to sustainable economic growth in the country.
The Bill was moved by Parliamentary Secretary for Finance, Revenue, Economic Affairs, Statistics and Privatisation Rana Muhammad Afzal Khan.
According to statement of objects and reasons, credit bureaus throughout the world have their eminence and impact on financial decisions. Lending and investment assessments by financial institutions particularly by banks are crucial elements for healthy credit culture in the country.
The credit bureaus provide information for objective examination of credit standing of the borrowers.
In Pakistan, a couple of private credit bureaus started their functions without any legal framework or regulatory requirements. This raised concerns for SBP especially due to sensitivity of banking information being maintained by these bureaus.
Proposed law provided comprehensive legal and regulatory framework for incorporation and functioning of credit bureaus in Pakistan. The law will provide a platform for accuracy in risk prediction.
This would create rapid business benefits including increased array of credit products, improved collection rates, reduced net bad debts and low operating costs. The strong credit risk management culture would result in healthy growth of credit, reduce risks of default and enable lending to new segments of borrowers.
A new clause III has been substituted as Licence: “No person shall commence or carry on business of or function as a credit bureau without obtaining a licence from the State Bank of Pakistan in the manner prescribed by regulations.”
Clause 6 for sub-clause (1) shall be substituted as: “(1) no person shall acquire more than 10 percent shares of a credit bureau either directly or indirectly, except with prior written approval of the SBP”. In sub clause (2), for the words “with fine which shall not be less than”, the words “with a fine not exceeding” shall be substituted.
After Part III a new Part IV shall be inserted as: “Every credit bureau shall on expiration of each calendar year prepare a balance sheet and profit and loss account in respect of all business transacted in that year by it”.
Moreover, the accounts of credit bureaus shall be audited by the auditors who are chartered accountants within a meaning of Chartered Accountants Ordinance, 1961 (X of 1961) and are on the panel of auditors maintained by the SBP within a period not exceeding three months of the date of closing of each calendar year.
For Clause 20, following shall be substituted: “Every credit bureau, upon request and payment of fee prescribed by regulations shall disclose to a debtor, clearly and accurately the source of credit information contained in the credit information report of such debtor.”
Moreover, Clause 38 has been substituted with: “The federal government may after consultation with State Bank of Pakistan by notification in the official Gazette make rules to provide for all matters for which provision is necessary or expedient for the purposes of giving effect to the provisions of this Act.”