KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Sheikh Sultan Rehman said that good corporate governance stands on the principle of transparency, accountability, responsibility and fairness.
He passed these remarks during a webinar on 'Corporate Governance: Issues and Challenges in Pakistan', held via Zoom link. He said that good corporate governance contributes to sustainable economic development by enhancing the performance of companies, reinforcement of property rights; reduces vulnerability of the financial crises, reduces transaction cost and cost of capital and leads to capital market development. Corporate governance has been adopted as one of twelve core best-practice standards by the international financial community.
He also highlighted the reforms taken by the government to improve the regulation of corporate governance in 2017, including the updates to the Companies Act, the issuance of the Listed Companies (Code of Corporate Governance) Regulations and updates to the Public Sector Companies (Corporate Governance) Rules 2013. He also discussed the family legislation in the management of public and private company and talked about draft of new code of corporate governance for public listed companies under which the chairman shall be elected subject to such terms and conditions and responsibilities as provided and the board of directors shall appoint chief financial officer, company secretary and head of internal audit of companies for enhancing transparency and efficiency in the companies.
Prof Dr Abdul Jabbar urged restructuring of Security Exchange Commission of Pakistan, Competition Commission of Pakistan and State Bank of Pakistan in order to improve the role and investment environment of Corporate Governance in Pakistan. He emphasised on the reforms with the assistance of private sector in these three organisations so that they work collectively for good corporate governance in Pakistan. He highlighted the vulnerable picture of Sindh which is severely affected during the recent monsoon season due to lack of good governance and infrastructure.
Copyright Business Recorder, 2020
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