World Bank recognizes Pakistan’s progress in corporate sector, Finance Minister yet to be impressed

March 11, 2019 (MLN): Chairman of Securities and Exchange Commission Pakistan (SECP), Mr. Farrukh Sabzwari together with the World Bank has launched a Corporate Sector Report prepared by the latter, on corporate governance in Pakistan.

Going by this report, corporate governance in the country has improved noticeably. Pakistan presently stands at the 137^th position in ease of doing business scale. It was previously ranked at 147^th position, according to dialogues carried out at the post-launch press conference in Islamabad.

According to the director of World Bank, there is room for further improvement for Pakistan, in terms of ease of doing business.

He said that the corporate sector is the engine of Pakistan’s economic growth. The economy should progress by 7-8% per annum.

Mr. Farrukh Sabzwari apprised that the SECP is following regulations at an international pattern and is bringing transparency in the corporate sector. 

Adding on, he informed that the Commission has reduced paper-work for brokers by reducing the required documents for brokers from 30 to 4.

While on one hand Finance Minister for Revenue, Mr. Asad Umar lauded SECP’s efforts by expressing satisfaction over its progress on corporate governance, he said that the public sector companies still lack in it.

He said that bureaucrats failed to bring transparencies in the entities while government institutions failed to update their account data.

Moreover, several institution lacked Chief Financial Officers (CFO’s) since over nine years whereas the accounts that we put forward for approval were five years old.

He urged the regulators including the Securities and Exchange Commission of Pakistan and Pakistan Stock Market to fully facilitate the corporate sector in order to enhance its productivity and contribution to the economy.

Drawing a comparison between private and government entities, the Finance Minister said the procedures for procurement are quite complex in the public sector. He said we have now got the cabinet approval to change the multilateral procurement rules.

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