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In order to facilitate the corporate sector, the Securities and Exchange Commission of Pakistan
launches the Companies Regularization Scheme (CRS) and Companies Easy Exit Scheme
(CEES) simultaneously to provide regularization as well as exit facilities to the defaulter
companies at the same time. The objective of these initiatives is to provide regularization as well
as exit facilities to the defaulter companies at the same time. Now these companies can either get
their defaults of non-filing of documents regularize under CRS or avail the exit facility under
CEES. The CRS provides defaulter companies an opportunity to file their overdue statutory
returns and annual accounts. It may be mentioned that normally the defaulting companies have to
file their overdue returns with usual filing fee plus three time additional fee and also face penal
action for late filing of documents. This Amnesty Scheme shall, however, provide the companies
to pay less fee and also absolve them of penal action for late submissions. The CRS is applicable
on all types of companies other than listed companies. The CEES, on the other hand, allows the
companies having no assets or liabilities and not carrying on any business, to avail easy exit
facility without undergoing the cumbersome winding up procedure. This scheme is applicable on
private and public unlisted companies.

These federal schemes are still implemented. According to Financial Daily dated January 11,
2011:

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) received an


overwhelming response from the corporate sector to the companies regularization and companies
easy exit schemes.

According to a press release, the schemes not only generated huge revenue but also enhanced the
corporate compliance rate and have thus opened avenues for future revenue generation. During
the period of July to September, 1264 companies regularized their defaults under CRS through
filing 6736 returns, while 1376 companies applied for easy exit under CEES. The total revenue
generated during the first phase was over Rs25 million. During the extension phase of schemes,
i.e. October to January 3588 companies filed overdue returns under CRS, and 516 companies
applied under CEES, generating about Rs15 million.
According to Business Recorder dated January 1, 2011:

ISLAMABAD: The amnesty schemes of the Securities and Exchange Commission of Pakistan
(SECP)--the Companies Regularization Scheme (CRS) and Companies Easy Exit Scheme
(CEES)--have been extended to January 3. According to a statement issued here on Friday the
schemes were to be closed on Friday.

This clearly shows that these schemes are still implemented today. The Security Exchange
Commission of Pakistan comes up with such scheme for a particular period.


Both amnesty schemes were simultaneously launched by the Securities and Exchange
Commission for three months, from July 1 to September 3o, in three phases of one month each.
On public demand the period of these schemes was extended up to 31-10-2010 and then
extended up to 31-11-2010.


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If the surplus spending units keep their $100,000 in savings in money rather than financial
instruments of corporation Z, there would be no economic growth. Borrowers borrow money to
invest in some profitable sector so that they get good returns but when the savers do not give the
money, borrowers won¶t be able to invest. Another disadvantage will be that for the surplus
spending units. Money saved at home has no economic value in future if there is inflation. Since
the savers will save money, they won¶t be able to grow their money so it will be loss for them.