Financial Institutions Amendment Bill 2026 proposes property seizure for loan defaulters in Pakistan
Key takeaways
- According to details, the proposed legislation introduces stricter measures against individuals who fail to repay bank loans in Pakistan, including property seizure and public disclosure of defaulters’ identities.
- Under the amendment bill, banks would be authorised to take possession of a borrower’s property in cases of loan default.
- Bilal Azhar Kayani clarified that banks would need to formally approach the government before taking possession of a property.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize The National Assembly Standing Committee on Finance has approved the “Financial Institutions Amendment Bill 2026”, under which banks could be granted expanded powers to take possession of properties belonging to loan defaulters in Pakistan.
According to details, the proposed legislation introduces stricter measures against individuals who fail to repay bank loans in Pakistan, including property seizure and public disclosure of defaulters’ identities.
Under the amendment bill, banks would be authorised to take possession of a borrower’s property in cases of loan default. However, financial institutions would first be required to issue three notices within a 90-day period before initiating any action.