11-10-2003, 04:13 AM
Just read the circular. Thanks SMR for the link. Nice move by SECP.
But i should also add that this may be yet another de-motivating factor for private companies to go public. In Pakistan, the imbalance between private companies and public companies is growing larger by the day. Throughout the world, listed companies are given more incentives by the governments whereas private companies are kept under a tighter noose.
The situation is quite the opposite in our country where SECP does all the tightening and law-making for the listed companies, although i might add rightly so, because of shareholder interest etc. But that doesnt mean that private companies should roam free and do whatever they like. Private companies constitute somewhere between 60-65% of Pakistan's total corporate output and they should be regulated in a much tighter manner than what is currently being done. Just having a higher rate of tax means nothing to these ppl as we all know how these private companies cheat taxes.
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Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!
But i should also add that this may be yet another de-motivating factor for private companies to go public. In Pakistan, the imbalance between private companies and public companies is growing larger by the day. Throughout the world, listed companies are given more incentives by the governments whereas private companies are kept under a tighter noose.
The situation is quite the opposite in our country where SECP does all the tightening and law-making for the listed companies, although i might add rightly so, because of shareholder interest etc. But that doesnt mean that private companies should roam free and do whatever they like. Private companies constitute somewhere between 60-65% of Pakistan's total corporate output and they should be regulated in a much tighter manner than what is currently being done. Just having a higher rate of tax means nothing to these ppl as we all know how these private companies cheat taxes.
________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!
