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" FINANCIAL INSTITUTIONS (RECOVERY OF FINANCES) ORDINANCE, 2001, FINANCIAL INSTITUTIONS (RECOVERY OF FINANCES) ORDINANCE, 2001, A CRITICAL STUDY   By   Saalim Salam Ansari, Advocate, Karachi   Newly promulgated Financial Institutions (Recovery of Finances) Ordinance No. XLVI of 2001 is full of serious contradictions, mistakes and requires redrafting as well as re promulgation with modifications.   The purpose of the enforcement of the instant Ordinance is shown that it is for the recovery of stuck‑up loans but on the other hand same has closed the doors of recovery of defaulted debts and revival of 4000 sick industries although revival of economy has been declared as one of four (4) vital points agenda by the President of Pakistan in his recent speech.   Through the Ordinance the author of statute has tried to nullify and to scrap the historical Riba's judgment known as Dr. Aslam Khaki's case (PLD 2000 SC 225) and recent judgments of a Single Bench of Sindh High Court declaring the restructuring as void, if it is based on the capitalization of mark‑up.   It is needless to add that to implement the Riba's judgment the Government of Pakistan has been granted an extension till 30th June, 2002 upon a UBL, revision petition. To treat the Riba's judgment as unworkable is the wish and will of so many so‑called liberal scholars and corporate intellectuals which is reflected in the instant Ordinance, but the Ordinance has badly failed to achieve the same for the number of reasons.   It is a one‑sided law in favour of banks as the facility of 24 monthly instalments for the payment of decretal amount has been withdrawn in the New Recovery Ordinance. The mark‑up upon the decretal amount will now be calculated from…