July 27, 2007	Friday	Rajab 11, 1428

Karachi, July 26: The private business sector of the country will have to earn the credibility by becoming more transparent and fair to be able to aggressively operate in a choosy and standards conscious globalised corporate world.

“International investors are becoming increasingly selective. They like to interact with responsible corporate citizens. Our businesses will have to transform and adhere to the tenets of good corporate governance to be able to enter into meaningful relationships with reputable foreign companies,” Mr Shaukat Tareen, chairman Karachi Stock Exchange said.

Mr Tareen strongly recommended implementation of stringent rules to check corporate frauds and irresponsible market practices. “There should be zero tolerance for corporate misconduct and those found involved in scams must be punished to deter others from overstepping their limits. Without accountability there is little hope for fairness, he said.

He also called for putting bankruptcy laws in place.

He was speaking as a chief guest at a consultative workshop co-sponsored by International Finance Corporation (IFC), Pakistan Institute of Corporate Governance (PICG), Securities and Exchange Commission of Pakistan (SECP) and the Association of Chartered Certified Accountants (ACCA).

The roundtable workshop that discussed the findings of the draft report of the survey of corporate governance practices in Pakistan did not attract big business tycoons. The gathering was primarily attended by the professionals working for the sponsors and the State Bank barring a few junior level executives of the private sector.

“The composition of the gathering reflects the interest of the private sector in the subject,” a participant commented.

Mr Zahid Zaheer, chief executive PICG, in his concluding remarks was sceptic as he felt that Pakistani business lacked vision to comprehend the benefits of adopting good corporate practices. “I am, rather sad at the quantity and quality of response we got for the survey that in the end serves the interests of all stakeholders, including the corporate Pakistan.

Only 22 per cent of the businesses approached with the questionnaire actually cared to respond. The quality of response showed that it was not given the importance it deserved at the company level,” Zaheer lamented.

M. Kaiser Naseem, manager Pakistan Corporate Governance Project, IFC, felt that the interest in good corporate governance practices in Pakistan was growing as it was a key to developing a market economy and civil society in transitioning economies.

He hoped that the current initiative by IFC and PICG would go a long way in developing awareness of corporate governance practices and refreshing skills and knowledge of the executives and directors responsible for overseeing and implementing prudent corporate practices.

Dr Afra Sajjad, head of Policy Development ACCA Pakistan presented the main findings of the survey and high points of draft recommendations.

The survey aims to provide a snapshot of the corporate governance practices of local listed companies relating to board practices, minority shareholders’ rights protection, information on disclosure and transparency, control frameworks and risk management. She also outlined recommendations for future corporate reforms.

Earlier Mr Arif Masud Mirza, head of ACCA welcomed the participants. Organisers felt that the workshop provided valuable feedback and made some worthy recommendations that could be incorporated in the final report of the survey.