ISLAMABAD: The National Assembly on Monday passed the Financial Institutions (Recovery of Finances) Amendment Bill, 2026, and the Pakistan Airports Authority (Amendment) Bill, 2026, to strengthen laws on recovery of bank loans and improve the management and functioning of the Pakistan Airports Authority.
The two bills were tabled separately in the Lower House of Parliament for passage. The House passed the bills with a majority.
According to the objects and reasons of “The Financial Institutions (Recovery of Finances) Amendment Bill, 2026,the bill seeks to strengthen Pakistan’s legal framework for recovery of bank loans and enforcement of mortgage rights. The bill introduces procedural improvements to enhance efficiency and transparency in recovery processes, while safeguarding bona fide leaseholders and limiting misuse of injunctive relief in Banking Courts.
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It also empowers financial institutions to seek assistance from authorities for possession of mortgaged property, provides legal protection for actions taken in good faith, and increases penalties for certain violations.
The amendments are intended to balance the rights of lenders and borrowers, improve loan recovery, and strengthen the overall credit environment in the country.”
According to the object and reasons of “The Pakistan Airports Authority (Amendment) Bill, 2026, the Bill seeks to update the legal and administrative framework governing the Authority in line with recent structural changes following the merger of the Aviation Division into the Defence Division in February 2025.
The existing law still reflects the earlier Aviation Ministry structure despite the institutional changes. To ensure continuity and effective governance, the bill proposes the inclusion of another senior officer from the Defence Division on the Pakistan Airports Authority Board.
The bill also addresses operational challenges in Board functioning, proposing a mechanism for decision-making through circulation in emergencies where convening meetings on short notice may not be possible, subject to a higher threshold of majority approval.
In addition, it suggests changes in the composition of the Executive Committee by replacing the representation of the Finance Division with that of the Defence Division, while also including the Director of Finance of the Authority.
To broaden the talent pool, the amendment proposes relaxing the eligibility criteria for the appointment of the Director General of the Pakistan Airports Authority, allowing candidates from the private sector alongside public servants, with detailed qualifications to be prescribed in the rules.
Copyright Business Recorder, 2026