Finance Minister chairs briefing session on consultative process with stake holders on draft companies bill 2016

Islamabad, March 13, 2016 (PPI-OT): Finance Minister, Senator Mohammad Ishaq Dar here chaired a briefing session on the consultative process with stake holders on draft companies bill 2016. He was also briefed about Pakistan stock market’s possible induction into the emerging markets index of the Morgan Stanley Capital International (MSCI).

Chairman, Securities and Exchange Commission of Pakistan (SECP) Mr Zafar Hijazi informed the finance minister about salient features of new companies’ bill 2016 and said that the SECP has carried out an exhaustive consultative process with all the stake holders to seek comments/suggestions of all the stake holders on proposed draft of companies’ bill. He said that the SECP has organized consultative sessions and roundtables at all the major cities of Pakistan in collaboration with chambers of commerce and industry, FPCCI and ICAP.

The SECP Chairman informed the minister that following the completion of consultative process necessary amendments in the draft bill are being made in light of the suggestions received during consultation. The minister advised SECP to organize a seminar in Islamabad to highlight the salient features of proposed companies’ bill. All leading professionals related with corporate sector and office bearers of chamber of commerce and industry and other business bodies should be invited to this seminar.

The Finance Minister was also informed that Pakistan Stock Exchange (PSX) officials had briefed the MSCI on the reforms recently introduced in Pakistan’s capital market. Moreover, during the PSX’s road shows in London, New York and Hong Kong, big fund managers from all over the world were briefed on recent reforms in the capital market as well as on economic turnaround in Pakistan. MSCI and the fund managers greatly appreciated Pakistan’s economic reforms and improvement in country’s capital market and with that the likelihood of Pakistan’s capital market being included in the MSCI’s emerging market index had greatly improved.

He also apprised the Minister about the upcoming assessment of Pakistan’s capital market by International Organization of Securities Commission (IOSCO). He said that SECP has made significant reforms in regulatory framework of capital markets to implement the IOSCO’s principals. He expressed the hope that Pakistan would achieve up to 80 percent compliance with the IOSCO principles from the existing level of 62 percent.

It may be recalled that before the last year assessment, Pakistan implementation level to IOSCO’s principals was merely 34 percent. The Finance Minister appreciated efforts of the SECP for carrying out in depth consultations with the stake holders on the proposed draft companies’ bill. He said engagement of chambers of commerce and industry, FPCCI and ICAP was especially laudable. He also expressed appreciation of SECP’s efforts aimed at including Pakistan’s capital market in the MSCI’s emerging market index.

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