LAHORE: The recent and ongoing actions taken by the National Accountability Bureau (NAB) against companies has badly shattered the confidence of local and foreign investors in doing further business in Pakistan, participants at a consultative session on Friday opined unanimously.

The participants believed that security clearance from law enforcement agencies (LEAs) and various issues were major hindrances in the ease of doing business as well as lack of foreign investment in the country.

The event ‘Role of SECP to Compliment Business Environment’ was organised by the Overseas Investment Chamber of Commerce and Industry (OICCI).

“The way NAB is working is so discouraging for the investors. It is really surprising that lower cadre officers in NAB, who are not familiar with corporate laws, are interrogating top officials of companies and deciding cases without consulting the Securities and Exchange Commission of Pakistan (SECP),” said Farooq Amjad Mir, a businessman from Lahore.

“Quizzing by NAB and then trial in courts is badly damaging the reputation of companies as well as investors. In this situation how we can expect foreign investment in our country,” he said, urging SECP to address the situation immediately.

He further said the procedure for security clearance of foreign investors, especially those from India and Afghanistan, was lengthy and a major impediment.

While responding to reservations, SECP Executive Director Muzaffar Mirza, acknowledged the issues. He said that various corporate laws barred NAB and the Federal Investigation Agency (FIA) to not take up such issues directly. “They (NAB and FIA) can only initiate such inquiries after receiving a reference against wrongdoings of any company. But they don’t do unfortunately,” he said, stressing, “It shouldn’t be happening.” He added that SECP had already taken up this issue with the respective LEAs.

Speaking on the occasion, SECP Chairman Shaukat Hussain said the commission had introduced various reforms in simplifying procedures related to registration of companies, provision of level playing field to the firms, integration of the system with FBR, online registration within four hours, amendments in laws in the wake of ease of doing business, incorporation of companies, data linkages with Punjab government. He claimed that under various reforms, the number of total registered companies had touched a figure of 77,852 by end of last month.

Addressing the event, Nestle Pakistan CEO Freda Duplan appreciated the SECP efforts for introducing various reforms in ease of doing business.

OICCI Member Najeeb Ahmad and others also attended the event.

Published in Dawn, August 18th, 2018