ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed the corporate boards of listed companies to formulate the gender diversity policy for recruitment/promotion along with gender pay gap analysis within the organization.

According to the circular number 7 of 2021 issued by the SECP Saturday, the gender diversity in decision making has a proven correlation with enhanced financial performance of the corporate sector and the overall growth of the economy of a country. Pakistan figures fairly low in the Global Gender Gap report index, prepared by the World Economic Forum and there is a strong need to encourage women participation in the workforce, developing in-demand skills and creating opportunities for women to advance into leadership roles within the corporate sector.

Taking this into account, the commission would like the corporate boards of listed companies to formulate a gender diversity policy for recruitment, promotion along with gender pay gap analysis within the organization.

The commission has directed the listed companies to formulate a gender diversity policy for retention and development of skills of their women employees, providing them conducive work environment which includes but is not limited to the provision of day care facilities, better maternity leaves, robust anti-harassment and speak-up policies and diverse committees overseeing the complaints pertaining to harassment, etc.

The commission has directed the listed companies to formulate a gender diversity policy to oversee the implementation of the above-referred diversity policy with concrete targets and review the progress at least annually and make the diversity objectives part of the Key Performance Indicators (KPIs) of senior management to ensure that they are applied throughout the company.

The SECP has directed the listed companies to formulate a gender diversity policy to maintain the gender disaggregated data with regard to female employment within the company as well as data regarding female customer base or supply base as may be relevant, and make it available to the Commission when required.

All listed companies are encouraged to proceed as recommended above and keep all stakeholders apprised by publishing the actions taken on their websites, SECP added.

Copyright Business Recorder, 2021