Federal Cabinet to meet in Islamabad with PM Imran in Chair

Federal Cabinet to meet on Tuesday (today) in the federal Capital Islamabad with Prime Minister Imran Khan in Chair.

As per details, Federal Cabinet to approve the Netting of Financial Contracts Bill 2020, designed to remove uncertainty about enforcing netting rights in case of bankruptcy and allow financial collateral arrangements in the domestic market.

The State Bank of Pakistan (SBP) has proposed the bill in consultation with the Securities and Exchange Commission of Pakistan (SECP).

Media report said the proposed law would remove any uncertainty about enforcing netting rights in case of a termination event, bankruptcy, insolvency proceedings, would limit the power of liquidators to prevent any cherry-picking of qualified financial contracts/ transactions, which fall under the ambit of netting provisions, and would allow financial collateral arrangements under such netting rights.

Netting is a method of reducing risks in financial contracts by combining multiple financial obligations to arrive at a net obligation amount.

Netting used to reduce settlement, credit and other financial risks between two or more parties.

Furthermore according to the Federal cabinet agenda,

Federal cabinet will reconstitute the Pak Arab Refinery (PARCO) board of directors and approve grants for journalists infected with the coronavirus.

The Cabinet will also approve the nominations for the board posts of Sui Northern Gas Pipelines Limited (SNGPL), Pakistan Petroleum Limited (PPL), Pakistan Medical and Dental Council (PMDC), Oil & Gas Development Company (OGDCL) and the appointment of Water and Power Development Authority (WAPDA) Member Finance, while the Economic Coordination Committee (ECC) will ratify the decisions of the meeting.