LAHORE, Aug 10: Chief Minister's Adviser Mowahid Husain Shah said on Tuesday that the country was likely to suffer social and economic setbacks if good governance was not adopted in the conduct of affairs at macro and micro levels.

He was speaking at a seminar on corporate governance, organized by the Lahore chapter of the Institute of Cost and Management Accountants of Pakistan. Mr Shah said human resource development through education and ethics played pivotal role in the development of a nation. Without education and ethics, good governance could not alleviate poverty.

Religion played a significant role in the promotion of good governance through ethics. "The culture of religious rigidity in the country has landed us in a very difficult economic and political situation. We emphasize high living but low thinking. The need of the hour is to adopt simple living and high thinking."

Mr Shah said internal audit and check developed better accountability and transparency in economic sphere. Better financial control and direction could improve performance in business organizations and generate employment thus alleviating poverty.

Pakistan Institute of Chartered Accountants president Mujahid Eshai said the code of good corporate governance, despite its regulatory overtones, was an aid for management to run business organizations efficiently to achieve economic welfare which ultimately trickled down to common man.

The code of corporate governance led to better management and greater foreign investment in Far Eastern countries. He hoped that good corporate governance would also brighten the prospects of direct cross-border investment in Pakistan.

FCMA Nazir Ahmad Shaheen said the code of corporate governance of the Security Exchange Commission of Pakistan was aimed at promoting transparency and accountability in business reporting. Strong financial and non-financial discloser regime was the focal point of good corporate governance.

FCMA Aale Imran Siddiqui spoke about the role of directors in directing and controlling business organizations. Quoting Sir Adrein, Mr Siddiqui said a country's economy depended on the drive and efficiency of its companies.