Bank Makramah Limited (BML) has received formal approval from the Islamabad High Court for its restructuring scheme, marking a significant step toward strengthening its capital base and aligning with the State Bank of Pakistan’s minimum capital requirements. The approval enables BML to implement a comprehensive reorganization plan, including adjustments to its shareholding and capital structure, ensuring long-term financial stability and compliance with regulatory mandates.
In a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday, BML confirmed that the court had “graciously passed an order granting its sanction for the Scheme,” filed under Sections 279 to 283 and 285(8) of the Companies Act, 2017. The restructuring plan was a collaborative submission between Bank Makramah and Global Haly Development Limited (GHDL), reflecting coordinated efforts to enhance the bank’s capitalization and operational viability.
The court’s approval initiates several key measures under the restructuring scheme. As part of the process, fully paid ordinary shares of BML will be issued and allotted to GHDL shareholders, ensuring an equitable distribution of equity post-restructuring. Simultaneously, the bank will reduce its share capital through the cancellation of the Share Capital Unrepresented by Available Assets, a move designed to streamline its balance sheet and improve capital efficiency.
Following the implementation of the court-sanctioned scheme, BML’s issued and paid-up capital will be formalized at Rs10 billion, divided into one billion ordinary shares of Rs10 each. This recalibration of the bank’s capital structure is expected to reinforce investor confidence, satisfy regulatory benchmarks, and position BML for sustained growth in Pakistan’s competitive banking sector.
The bank noted that specific book closure dates required to give effect to the scheme will be announced in consultation with the Pakistan Stock Exchange. This procedural step ensures that all corporate and regulatory obligations are fulfilled, and shareholders are duly informed about the adjustments to their holdings. The full court order has also been made publicly accessible through the Islamabad High Court’s official website, promoting transparency in the restructuring process.
BML’s successful court-sanctioned restructuring comes at a critical time, as Pakistan’s banking sector continues to navigate regulatory pressures, market volatility, and evolving capital adequacy standards. By proactively addressing capital shortfalls and implementing a structured reorganization, the bank demonstrates a forward-looking approach to corporate governance and risk management.
The approval of this scheme is not only a milestone for BML but also signals growing confidence in the legal and regulatory frameworks that support corporate restructuring in Pakistan. Analysts suggest that such measures can bolster investor trust, enhance liquidity, and provide a foundation for future expansion and strategic partnerships.
With the Islamabad High Court’s sanction, Bank Makramah is now positioned to stabilize its operations, strengthen its financial base, and continue delivering services effectively to its customers while remaining aligned with the regulatory vision of the State Bank of Pakistan. The restructuring is expected to serve as a benchmark for similar corporate exercises within the banking sector, promoting transparency, accountability, and sustainable growth.
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