KARACHI, July 25: The Finance Minister Shaukat Aziz on Friday said transparency, excellence and professionalism should be the major drivers in reporting of corporate affairs.

He was speaking at the ‘Best Corporate Report Awards-2002’ ceremony jointly organized by the Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost & Management Accountants of Pakistan (ICMAP).

Aziz observed that in the final analysis it was the people who matter. Strong SECP, very good auditors, proper role of the boards, independence of the chairman of the board from the CEO, internal corporate culture and governance were all needed to build up a strong corporate sector.

He contended that in the last three years, the SECP had come a long way and transformed the entire corporate culture, inspite of some initial resistance to change. He said that timeliness and good information flowing to the stakeholders was critical for the corporate governance.

The minister said he was pleased to say that all International Accounting Standards (IAS) had been adopted by Pakistan, except a few “which are not really applicable to us,” and in that respect Pakistan was ahead of the countries in the region. But the reforms process, he declared, was far from over. “We are now talking of second generation reforms,” he said and added that the far reaching reforms in the CBR and role of SBP as regulator had also enhanced scope for the corporate sector to play its part as a partner in the development. “The expenditure management, separating audit from accounts would ensure quality maintenance of public funds and improve immensely book keeping on modern lines,” he said adding that automation of all accounting functions had significantly advanced and that the process, subsequently, would be extended to provinces.

The minister said that the need for development of sound corporate reporting was reflected in the Code of Corporate Governance issued by the SECP and it was including in the listing regulations of the stock exchanges. “Based on internationally recognized principles, it emphasizes openness and transparency in reporting of corporate affairs,” he said and added that the role of accountants should be emphasized in achieving effective presentation of disclosures of financial information.

Shaukat Aziz said that Pakistan had paid off a billion dollars worth of debts and the country was gradually gaining economic sovereignty. But, he admitted, that it must touch the lives of all — even the peasant toiling in the far off village. “We have to keep the course to achieve that aim,” he said.

Speaking earlier, Abdul Rehman Qureshi, the chairman SECP said that a significant part of the SECP’s reform agenda was targeting and improving quality of information provided in companies’ annual reports as well as improving the quality of auditing process. “All these efforts are aimed at fostering investor confidence that will provide the necessary stimulus for further development of the country’s capital market,” the SECP chief said.

Khaliq-ur-Rahman, the president of ICAP and Sher Afgan Malik, President ICMAP each presented address of welcome. They said that it was the third such awards competition and the number of companies participating had increased from 150 for the year 2000 to 250 for 2001 and 350 for the latest year.

The Finance Minister presented the Best Corporate Report Awards- 2002 to the following companies, which were judged in six categories (in order of their standing):

Services Sector: Askari Commercial Bank; Faysal Bank; Orix Leasing Pakistan; Pakistan Industrial Credit & Investment Corporation and Crescent Leasing Corporation.

Textile Sector: Ibrahim Fibres and Kohinoor Textile Mills. Chemical & Fertilizer Sector: Fauji Fertilizer Company; Engro Chemical Pakistan; ICI Pakistan; BOC Pakistan and Highnoon Laboratories.

Engineering Sector: Millat Tractors; Siemens (Pakistan) Engineering Company; Al-Ghazi Tractors; Atlas Honda and Hinopak Motors.

Fuel & Energy Sector: Attock Refinery; National Refinery; Pakistan State Oil; Shell Pakistan and Shell and Gas LPG (Pakistan).

Miscellaneous Sector: Rafhan Maize Products Company; Packages Limited; Pakistan Tobacco Company; Unilever Pakistan and Century Paper & Board Mills.

The overall first position was awarded to Fauji Fertilizer Company Limited.