ISLAMABAD (APP) - The National Assembly Standing Committee on Finance and Revenue has emphasized to create a framework for an early retirement of unpaid inter corporate circular debt and corporate liabilities. The Committee which met here Wednesday under the chairmanship of Mrs Fauzia Wahab showed concern over unpaid inter corporate circular debt, said a statement. Secretary Finance apprised the committee that PEPCO was allowed by the government to obtain loans from commercial banks to meet its obligations on accounts of power generation and such an outstanding stock that has reached to Rs. 216 billion. He said that it was accumulated because of withdrawal of subsidies to the Water arid Power Development Authority and not letting the institution to increase electricity tariff by the government. He informed that serious steps have been taken to resolve the matter like launching aggressive campaign by KESC and PEPCO to recover their arrears, improving management efficiencies and ensuring recovery of current dues. President Small and Medium Enterprises Bank (SME) Ltd put the Committee in the picture that the Bank was established under the companies ordinance 1984 by amalgamation of two Development Financial Institutions i.e, RDFC and SBFC by a restructuring plan of Ministry of Finance with help of ADB in January, 2002. While briefing to the Committee, he apprised that total assets of SME Bank are Rs. 15,053 million while its liabilities has reached to Rs.15,071 millions. The restructuring plan required the reduction of branches from 75 to 17, staff rationalization by through Voluntary Separation Scheme (VSS) and payment of Rs.3 billion to SBP and ultimately the privatisation of the bank by June 2006. The CEO further updated that restructuring and privatisation process had grave consequences and effects on the organization and ultimately led the Bank to a collapse. The Standing Committee expressed its serious apprehensions over the performance and quandary of SME Bank and recommended the matter to sub-committee, with Riaz Fatyana MNA as its convener, for quick investigation and analysis of the reasons for the failure of institution. The Meeting was attended by, Mir Nghat Parveen, Khalida Mansoor, Raiz Fatyana, Abdul Rashid Godil, Bushra Gohar besides other senior officials from Ministry of Finance and SME Bank.