ISLAMABAD, Nov 20: A high-level mission of the Asian Development Bank will be arriving here next week to help reduce war risk insurance burden on Pakistani exports.

“The ADB mission will discuss the issue of increased war risk charges and we hope to have 250 million dollar from the Bank to meet our requirements,” said the chairman, Securities and Exchange Commission of Pakistan (SECP), Khalid M. Mirza.

Talking to Dawn here on Tuesday, he said that insurance premium had gone up as a result of September 11 events, which was causing serious problems. “We might have to pay additional 300 million dollars as part of the insurance premium during the current financial year, and ADB has indicated $250 million support,” he said.

He said that the ADB has indicated to extend 100 million dollar for meeting increased insurance charges for Pakistani goods while it will provide 150 million dollar for paying the insurance cost of bigger infrastructure projects.

Replying to a question, he said that the SECP would enhance the capacity-building of insurance companies through the financial support of the ADB. “Our insurance companies must get re- insurance from other foreign companies,” he said adding that Pakistani banks has been directed not to insist on deposits for insurance from the insurance companies. He said efforts were being made to associate foreign insurance companies with local companies so that re-insurance charges could be curtailed.

Currently, Pakistan Insurance Corporation manages re-insurance for the country’s private sector.

“We are working on a plan to set up an insurance company in the private sector with the collaboration of some good foreign company and hopefully we will manage $200 million capital for it,” the chairman said.

He also said that a decision has been taken to extensively improve corporate governance to promote efficiency in the public and private sector specially by hunting unscrupulous chartered accountants, auditors and auditing companies.

“Nobody wants transparency in both the public and private sectors but we have decided to hold accountable unscrupulous and unprincipled auditors and auditing companies,” he said.

The SECP, he said, was currently meeting all the stakeholders to improve corporate governance on the pattern of the US and Europe.

“There is a huge amount of opposition against me for trying to have due diligence and transparency,” he said.

He said that a new national clearing and settlement system was being introduced to work as the “clearing house” on behalf of all three stock exchanges of the country. Currently, he said, all the three stock exchanges were separately working. “The risk management will improve with the setting up of a new joint clearing house,” he said.

To a question, he said that the brokers’ conduct would have to be improved to discourage speculative buying at the stock exchanges. He said action against four brokers had just been taken.

Mr Mirza said that he was receiving a number of complaints daily against the brokers and various brokerage houses. “And we are taking all necessary regulatory measures.”

He also said that the SECP was taking action against those companies which were not fair to their small shareholders. “We have to improve and upgrade accounting procedures of the companies,” he said adding that judicial system needed to be fully improved so that the interests of the small investors were protected and illegal practices discouraged.