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Pakistan forms institute of corporate governance
09-21-2005, 08:25 PM,
PICG to train business executives

Pakistan Institute of Corporate Governance would soon introduce

regular programmes for education on corporate governance as a subject

and training in the particular field. “The forthcoming course and

training would be offered to directors, corporate executives and

chief financial officers of the companies,” said a PICG statement

issued on Thursday. It said that under the existing arrangements, the

prospective members of the PICG would immediately be benefited from

the available wide range of research and publication facilities of

the Institute of Business Administration (IBA) including a library

having unique collection of over 50,000 books

09-21-2005, 09:59 PM,
Dr Tariq Hasan, chairman of the Securities and Exchange Commission of

Pakistan (SECP) has said that there will be no further extension in

the date of demutualisation of stock exchanges and the SECP is

forming a company law commission in order to revise and upgrade

current laws.

Dr Hasan, while taking to reporters at a seminar held at in Karachi,

said the commission has felt the need to revise that existing laws

and reform it where it is required. And for that the SECP will

establish a separate company law commission by February.

He said regulations for the electronic trading are under preparation

and would be introduced in one month. On the other hand for awareness

regarding E-governance and to improve corporate governance in general

the commission has formed Pakistan Institute of Corporate Governance

(PICG), which is likely to strengthen the corporate governance in

country, he added. Dr Hasan said that in a recent visit of a

delegation of International Monitory Fund (IMF) has also appreciated

the recent development in regulatory framework.

Edited by - Mahtab on Sep 21 2005 50208 PM
02-15-2006, 08:01 PM,
Since the arrival of the Code of Corporate governance for the listed companies in 2002, a healthy debate has started on how to improve the corporate governance in the country. Good corporate governance means that companies are run in the best interest of the shareholders and the other stakeholders. The principles underlying good corporate governance practices are transparency, accountability, and control systems. One key conclusion that has come out of the discussions on corporate governance is that there is a need for a Centre of Corporate Governance in the country, which can inculcate the principles in the practitioners. This centre or institute would be an agent of change in raising the governance standards and keeping alive the debate on the subject.

The objective of the Centre would be to determine the best practices of corporate governance and educate the various stakeholders in companies about these practices. It would be the forum where practitioners, regulators, and academics would meet to openly debate the governance issues. The result of this interaction would be that the governance standards in the country's companies would be raised to the betterment of all stakeholders.

There are a number of institutes of corporate governance internationally.

In Europe, there is European Corporate Governance Institute (ECGI), which has its registered office in Belgium. It is an international research oriented non-profit association. According to ECGI, its primary role is 'to undertake and disseminate impartial and objective research on corporate governance and undertake any other activity that will improve understanding and exercise of the highest standards in corporate governance.'

In USA, universities have set up their own institute of corporate governance focusing on providing quality research on the subject. The International Institute of Corporate Governance (IICG) was established at the Yale School of Management, USA in 2001. Its objective is 'to be the leading research, teaching, and policy centre focused on the institutional framework for corporate governance and the principle and practices of effective corporate governance.' A Centre for Corporate Governance is also working at the Tuck School of Business at Dartmouth, Hanover. Similarly, there are other institutes with similar objectives.

In Russia, an Institute of Corporate Law and Corporate Governance was set up in 2000. The mission of this institute is to 'facilitate private initiatives to improve corporate governance and protect investor rights.' It has a much broader scope than most of the other institutes and carries out activities such as expert evaluation of corporate governance arrangements of major Russian companies, continuous rating of businesses for the quality of their corporate governance and consultation with various market stakeholders on aspects of corporate governance including corporate restructuring.

In some countries, instead of an institute of corporate governance, a more focused institute of directors has been established.

The well-known Institute of Directors (IOD) is based in London since 1903. Its philosophy is to 'to serve, support, represent and set standards for directors'. Currently it has around 55,000 members. In Canada, an institute of Corporate Director is working since 1982, in Thailand, since 1997, and in Singapore since 1998. These institutes are not a luxury of the relatively developed countries. Countries like Nigeria and Malta also have their IODs.

The international models show that such a centre can be established in a number of different ways. It can be research oriented, work on overall corporate governance or focus on the board of directors.

We propose that the Centre in Pakistan should be established as a non-profit association focusing more on practical aspects of corporate governance rather than academic research. Its particular focus should be on the regulators - the stock exchanges, SBP, and SECP - because the regulators can convert a practice into law and then implement it. The Centre can also help the regulators raise their own standards of governance, which would bring more force to their efforts.

To meaningfully contribute to corporate governance on an ongoing basis and to really make its presence felt, the Centre should rate companies on corporate governance. These ratings would communicate to all the stakeholders how good or bad a company is being governed. A not-for-profit entity, its ratings would be subject to lesser conflicts of interest than those of a credit rating company. These ratings would also provide the centre with on-going income.

On the basis of its ratings, market forces would reward well-governed companies and penalise poorly governed companies. These ratings would be particularly helpful to those who do not possess the knowledge or resources to gauge the quality of governance in a company.

The Centre would also play a key role in educating directors of their responsibilities. The board of directors is a key element in the governance structure. Often directors, particularly, non-executive directors have little idea of best governance practices. By arranging short courses for directors, the Centre can make a substantial contribution to the betterment of corporate governance within a short time.

An area on which the Centre can contribute tremendously is the public sector enterprises. The government owned and controlled enterprises are not known for virtues like competence, transparency, and accountability. Their directors and the senior management are quite likely to be lacking the knowledge and skills required for good governance. Ideally, there should be a selected set of mandatory courses for educating the directors and senior managers of public sector companies.

The Centre should target creditors, particularly bankers, to educate them on their role in corporate governance. Banks are the largest lenders to most of the companies and they can use their bargaining power to implement best practices in their debtor companies, to their own advantage and to the advantage of other stakeholders.

This Centre should be the main channel through which the best international practices would flow to our corporate sectors. Through an active exchange of information, this Centre would learn from the corporate experience the world over and bring the best practices to Pakistan, customised for the local needs.

The Centre would need to maintain a strong presence in the media, particularly the Internet, television, and newspapers. Considering the interest of the regulators and the companies in the on-going debate on corporate governance, such presence would not be difficult to establish. The centre would also need to be mobile. It should not stand still like a university that waits for its students to come to it but reach out to its customers. It can use the premises of different business schools to carry out its activities. There would be a need for office space but there should not be any need for g*****ose buildings.

A Centre is only as good as those who are running it. It would be critical to select a diverse group of the very best for running it. It would be worth taking some extra time and effort to select a small team of outstanding individuals. Mediocrity must stay away or it would ruin the Centre before it takes off.

We think that the listed companies, regulators, foreign donors such as Asian Development Bank (ADB), United Nations Development Program (UNDP), the International Finance Corporation (IFC), different existing institutes such as Institute of Charted Accountants of Pakistan (ICAP), Institute of Cost & Management Accountants of Pakistan (ICMAP) and leading business schools should all make monetary and resource contributions to set up the institution and help make it a success. The donors and the regulators should take the initiative and later, others would come on board. The establishment of this Centre would institutionalise the debate on corporate governance and take the good governance initiative forward.
02-15-2006, 08:04 PM,
above post is a quote from TheNews
Sorry for not mentioning it in post
04-25-2006, 06:35 PM,
AOA Quote from UN online

"During the past few years, the financial and corporate world has

witnessed significant changes. Following the Asian financial crisis,

recent accounting scandals have brought to light the importance of an

effective institutional framework that would help corporate management

increase shareholder value while protecting the interests of other

stakeholders. To achieve this goal, the Securities and Exchange

Commission (SEC) of Pakistan (, in partnership with

the United Nations Development Programme (UNDP) and the Economic

Affairs Division of the Government of Pakistan, launched the SEC-UNDP

Project on Corporate Governance in August 2002. Under the purview of

the Project, UNDP has provided technical and financial assistance to

the SEC for developing and implementing good corporate governance

practices and establishing a sound regulatory framework for the

corporate sector in the country. The work involves implementation of

the Code of Corporate Governance, issued by the SEC in March 2002,

creating stakeholder awareness, capacity-building and networking with

other emerging markets. In order to attract sustainable capital, it is

imperative for economies in transition to focus on evolving a system

that ensures good corporate governance. As the dust settles after the

Asian financial crisis, most economic and development commentators

feel that a major determinant of the relationship between long-term

economic growth and poverty reduction is a well-functioning financial

and corporate sector. The inflow of foreign capital brings with it a

transfer of technology and managerial skills—factors crucial to the

developing countries in their economic progress. At the same time, the

confidence of local investors also heightens. This increased economic

activity improves human welfare in the form of an efficient allocation

of resources and more employment. Therefore, implementing good

governance practices has a positive impact on economic growth, which

creates opportunities and brings people above the poverty line.

The SEC-UNDP Project aims to make a positive contribution towards

economic growth in Pakistan by developing a stronger financial and

corporate sector. A Corporate Governance Cell has been established at

the SEC, which acts as a resource centre and carries out research and

awareness campaigns on various issues related to corporate governance.

Guidelines and newsletters are also being distributed to the corporate

community for a better understanding of the issue, and research is

being carried out for the harmonization of the provisions of the Code

with corporate laws and an assessment of the state of corporate

governance. The Cell also aims to prepare groundwork for the

establishment of an institute of corporate governance. A monthly

briefing series has been initiated to further increase public

awareness on various aspects of corporate governance. In order to

generate meaningful debate, extensive research work is in progress for

a working paper series, the first focusing on the role of

institutional shareholders in the promotion of corporate governance in

Pakistan. Another major initiative of the Cell is the development of

corporate governance index, where work has already started, to

indicate assessment of practices and policies and to reflect the

relative level to which a company accepts and follows the Code and

guidelines of corporate governance. An important part of the Project

is the exchange of contemporary ideas and collaboration on key issues.

SEC officials have been participating in study tours to leading

international institutions that are involved in the promotion and

development of sound governance practices. In order to encourage

participation of stakeholders in the system, it is essential to

broaden their understanding of the subject. In this regard, the SEC

has been conducting several activities, including seminars and

workshops, to increase the awareness of the directors and management

of listed companies of their statutory and fiduciary duties. The first

seminar under the Project-Strengthening Corporate Governance in

Pakistan—was held on 28 November 2002 and included local and foreign

participants, who gave an international perspective on corporate

governance. Three workshops have already been organized—in Islamabad,

Karachi and Lahore—on the "Responsibilities of Directors and

Management of Listed Companies". An important aspect of these

workshops was the utilization of the case study method in order to

draw lessons from corporate failures in the country and other parts of

the world. Participants lauded the efforts being undertaken by the SEC

to improve good governance practices. The SEC is also planning to

publish a manual that will highlight the role and responsibilities of

directors, keeping in mind the economic and legislative conditions

prevailing in Pakistan. In addition, it plans to hold a conference

involving key players in the country and abroad. By complementing

resources with UNDP, SEC has managed to act as an agent for bringing

positive change in the corporate culture of Pakistan. A more

transparent and efficient corporate sector would thus gain investors'

confidence and yield positive results towards growth. Author Shahnawaz

Mahmood of the SEC of Pakistan is working as research officer on the

UNDP Project on Corporate Governance.


04-25-2006, 06:44 PM,
AOA Press Release IFC and Pakistan’s Securities and Exchange

Commission to Strengthen Corporate Governance Reforms in Pakistan

Islamabad and Cairo, The Securities and Exchange Commission of

Pakistan and the International Finance Corporation, the

private sector arm of the World Bank Group, today signed a Memorandum

of Understanding today in Islamabad to promote and support corporate

governance reforms in Pakistan. Dr. Tariq Hassan, Chairman of the

Securities and Exchange Commission of Pakistan, said, “This is the

first project to tackle corporate governance reforms on a

comprehensive basis in our country. The project sets out to strengthen

current practices of financial institutions and corporations. It will

also advise the public sector on how to improve upon the legal and

regulatory framework for corporate governance and will build

institutional capacity for developing corporate governance curricula

and training.” He added that the project would help the Pakistan

Institute of Corporate Governance become a leading provider of

knowledge and awareness related to corporate governance practices in

the country. “What makes this joint initiative so unique,” added

Michael Essex, IFC’s Acting Director for the Middle East and North

Africa, “is that it will attempt to turn a short-term technical

assistance project into a sustainable structure that can provide

quality corporate governance services. It will do so by working both

with and through the recently established Pakistan Institute of

Corporate Governance.” The initiative announced today, the Pakistan

Corporate Governance Project, is fully funded by IFC and proposes to

support the Pakistan Institute of Corporate Governance in five key


Setting up training and certificate programs on corporate governance for company directors, managers, and secretaries;

Building capacity for research and development to conduct surveys, issue publications, and produce best practice manuals;

Developing and providing consulting and advisory services on corporate governance to Pakistan’s banks and corporations;

Raising awareness of corporate governance practices via conferences, seminars, and roundtables;

Providing policy advice to the government on legal and regulatory reforms relating 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 added, “All future services are to be based on

internationally recognized best practices, yet tailored to Pakistan’s

emerging market environment, focusing on key corporate governance

issues that are relevant to family-owned structures. These include

building professional boards, implementing internal control systems,

facilitating succession planning, and ensuring information disclosure

for minority, outside shareholders." PEP-MENA is IFC’s technical

assistance facility that supports private

sector development in the Middle East and North Africa. PEP-MENA

focuses on improving the business enabling and regulatory environment

in the region; strengthening the financial sector; promoting the

growth of small and medium enterprises and their support services,

such as business organizations and consulting firms; helping

restructure and privatize state-owned enterprises; and developing

viable private sector and public-private partnership projects,

especially in infrastructure. The mission of IFC ( is to

promote sustainable private sector investment in developing countries,

helping to reduce poverty and improve people’s lives. IFC finances

private sector investments in the developing world, mobilizes capital

in the international financial markets, helps clients improve social

and environmental sustainability, and provides technical assistance

and advice to governments and businesses. From its founding in 1956

through FY04, IFC has committed more than $44 billion of its own funds

and arranged $23 billion in syndications for 3,143 companies in 140

developing countries. IFC’s worldwide committed portfolio as of FY04

was $17.9 billion for its own account and $5.5 billion held for

participants in loan syndications. The Securities and Exchange

Commission of Pakistan ( is the apex regulator of the

corporate sector, capital market, and nonbank financial sector in

Pakistan. The Commission introduced the Code of Corporate Governance

in Pakistan through the listing regulations of the stock exchanges and

has been actively involved in promoting awareness and implementation

of good corporate governance. It played a lead role in establishing a

dedicated institute on corporate governance, the Pakistan Institute of

Corporate Governance, as a public-private partnership that provides an

enabling environment for effective implementation of the Code of

Corporate Governance. The Pakistan Institute of Corporate Governance

is a not-for-profit company set up under Section 42 of the Companies

Ordinance, 1984. It aims to undertake activities that help achieve

good corporate governance in Pakistan and to create an enabling

environment for effective implementation of the Code of Corporate

Governance. The Institute’s initial sponsors comprise a balanced

representation of all major stakeholders from the country’s public and

private sectors. The founding members have subscribed to the

Institute’s Memorandum of Association.



05-07-2006, 08:54 PM,
hello Mahtab,
During my search about the ICSP i,fortunatly,came to know through this forum that you r in touch with Icsp since its inception in year 2004 and also have knowledge about the institute and its market value.As a perspective student of this institute i thought your comments/ guidance will be valueable for me.I m in need of all such information like where to go for admission,study etc. i also want to know its market value in the present corporate senario of pakistan specifically with referenc to the eXisting institute like ICAP & ICMAp,as both of these are, off course, contributting a lot toward the present corporate culture in the country.

Many Regards

Muhammad Ahmad
05-08-2006, 04:58 PM,
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">hello Mahtab,
During my search about the ICSP i,fortunatly,came to know through this forum that you r in touch with Icsp since its inception in year 2004 and also have knowledge about the institute and its market value.As a perspective student of this institute i thought your comments/ guidance will be valueable for me.I m in need of all such information like where to go for admission,study etc. i also want to know its market value in the present corporate senario of pakistan specifically with referenc to the eXisting institute like ICAP & ICMAp,as both of these are, off course, contributting a lot toward the present corporate culture in the country.
Many Regards
Muhammad Ahmad<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

AOA Muhammad Ahmad

May you please be clarify on that about which institute you want to know

1. ICSP (Institute of Corporate Secretaries of Pakistan) or

2.ICG (Institute of Corporate Governace)

if about


so visit

and after your visit if you have still have any query/question please

post here


05-08-2006, 09:41 PM,

Sorry for inconvinience. I was asking about ICG.

Muhammad Ahmad
05-09-2006, 03:36 AM,
05-24-2006, 08:12 PM,

Dear Mahtab,

Can you please tell me whether there is any official website for "Pakistan Institute of Corporate Governance" if you have then please let me know.



05-24-2006, 11:31 PM,
i think there no such link. you may find som information at the site of SECP

02-13-2007, 04:30 PM,
I am agree with you Muhammad ahmad
02-14-2007, 12:44 AM,
AOA to all friends,
My name is Maazullah. I am doing my PhD from netherlands. i just wanted to confirm if pakistan institute of corporate governance has formulated a framework for corporate governance rating (CGR)? Please anyone of you email me the relvant material on CGR especially the methodology used for rating. i need it for my research. if there is any research paper investigating the impact of CGR on firm's value, then plz email it to me at
thank you very much.
02-23-2007, 06:24 PM,
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Mahtab</i>
<br />I am agree with you Muhammad ahmad
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear Mahtab,

Guess you are the one who initiated discussion with regards to corporate governance therefore, would appreciate if you kindly advise us who should we contact in case anyone of us wants to join this institute?



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