The firm advises both lenders and borrowers on secured and unsecured lending, and appears in recovery proceedings before the Banking Courts in Sindh. Karachi is the country's financial centre, and this practice has grown alongside it.
We prepare and review facility agreements and the security that supports them, and act in enforcement when a facility goes wrong. Islamic finance structures — murabaha, ijarah, diminishing musharakah — form a substantial and growing part of the work, and require documentation that is enforceable as well as compliant.
What we do
- Facility agreements, term sheets and syndicated lending documentation
- Security documentation: mortgages, hypothecation, pledges and charges
- Registration and perfection of charges with the SECP
- Islamic finance structures including murabaha, ijarah and diminishing musharakah
- Recovery suits under the Financial Institutions (Recovery of Finances) Ordinance 2001
- Enforcement and sale of mortgaged property
- Defending recovery proceedings and negotiating restructuring
- Regulatory advice on State Bank of Pakistan prudential regulations
How we work
Matters in this area are handled by senior counsel from first instruction to final order. We give a candid view of the merits at the outset — including where a claim is not worth running — and agree fees before work begins rather than after.
If your matter touches more than one of our practice areas, it will be dealt with by the same team rather than passed between departments.
Common Questions
Banking & Finance: frequently asked
How does recovery under the Financial Institutions Ordinance differ from an ordinary suit?
The Ordinance provides a specialised and comparatively expedited procedure before the Banking Courts, with restrictions on the defences a borrower may raise without leave. It is materially faster than an ordinary civil recovery suit, which is why financial institutions rely on it.
Can a borrower defend a banking recovery suit?
Yes, but the procedure requires leave to defend, supported by an affidavit setting out a substantial question of law or fact. The application must be filed within a short window, so early advice matters a great deal.
What is a banking court in Pakistan?
Banking courts are special courts under the Financial Institutions (Recovery of Finances) Ordinance 2001 that hear recovery suits brought by banks and claims by customers against financial institutions. They follow a faster, summary procedure than ordinary civil courts, which makes early legal advice more important.
What happens if I default on a bank loan in Pakistan?
The bank will usually issue notices before filing a recovery suit in the banking court, and it may enforce any mortgage or security. A borrower who is sued must apply for leave to defend within a short period, generally thirty days from service of the summons, or the court can pass a decree without hearing a defence.
Can a bank in the UAE or abroad file a case against me in Pakistan?
A foreign bank can sue in Pakistan, and in some circumstances a judgment or award obtained abroad can be enforced here. Whether that is possible depends on where the loan was made, what the contract says about jurisdiction, and whether the foreign decision meets the tests for recognition. Overseas Pakistanis facing such claims should take advice early.
Enquiries
Discuss a banking & finance matter.
An initial consultation carries no obligation, and we will tell you plainly whether the firm is the right one for the matter.