ISLAMABAD, Aug 19: The Securities and Exchange Commission of Pakistan (SECP) and the International Finance Corporation (IFC), the private sector arm of the World Bank (WB), here on Friday signed a memorandum of understanding to promote and support corporate governance reforms in Pakistan.

“This is the first project of its kind in Pakistan and it will serve to augment the initiatives of the SECP to achieve good corporate governance”, said SECP chairman Dr Tariq Hassan, after signing the MoU.

He said the project would strengthen governance practices of financial institutions/corporations, impart training to directors on their roles and responsibilities and, finally, build institutional capacity in terms of developing corporate governance curricula and trainings.

The project would help the Pakistan Institute of Corporate Governance (PICG) assume its role of being a leading provider of knowledge and awareness regarding corporate governance practices.

“What makes this joint initiative so unique is that it will attempt to turn a short-term technical assistance project into a sustainable structure to provide quality corporate governance services. It will do so by working with and through the recently-established PICG,” said Michael Essex, IFC’s Acting Director, Middle East North Africa (MENA), while speaking at the ceremony.

The project is fully funded by the IFC and proposes to support the PICG in five areas.

First, the project is aimed at setting up training and certificate programmes on corporate governance for directors, managers and company secretaries. Second, it would build research and development capacity to conduct surveys, and issue publications and best practice manuals. Third, it would develop and provide consulting and advisory services on corporate governance to Pakistani banks and corporations.

Fourth, the project would raise awareness of corporate governance practices via conferences, seminars and round-tables, and fifth, it would provide policy advice to the government and regulator on legal and regulatory reforms related to corporate governance.

“This joint initiative is a business-project, with clearly defined goals, objectives and activities that are to be laid out in a detailed business plan”, said Jesper Kjaer, General Manager of IFC’s Private Enterprise Partnership for the Middle East and North Africa (PEP-Mena).

He said all future services in Pakistan would have to be based on internationally recognized best practices, however, at the same time they would be tailored to Pakistan’s emerging market environment, focusing on key corporate governance issues relevant to family-owned structures.