Adviser to Prime Minister on Finance, Dr Salman Shah has said that Pakistan's economy is growing strongly and since it has been transformed into a market-based economy, companies, particularly well governed companies, are going to be its engine of growth in future.
He was speaking at a seminar on "Corporate Governance Beyond Listed Companies" organised jointly by Center for International Private Enterprise (CIPE), Pakistan Institute of Corporate Governance (PICG) and Institute of Chartered Accountants of Pakistan (ICAP) here on Thursday.
Salman Shah said that the economy was being transformed into market economy run by private sector. "With the collapse of USSR, we have seen progressive growth in Pakistan's economy and it has been recognised as one of the emerging economies in the region after India and China", he added.
He said that in the 21st century, Pakistan's economy would be one of the major economies of the world. "In that sense we have to create environment conducive to achieve our potential". The developed economies of the world are in constant reformation, therefore, we need to continue reform our economy", he added.
The adviser said that the Karachi Stock Market in spite of various shortfalls has output form of emerging markets. "Our growth is exceeding good, private sector is increasing and overall growth will increase in time. We have been able to issue 30 years' bonds in the international market, which no other has done so far".
He said around 54 percent population of the country was under 19 years of age and these youth were the real engine of the country's economy. "We have to utilise this youth manpower effectively". He appreciated this important initiative taken by CIPE jointly with PICG and ICAP and assured them of government's support.
Chris Pierce, CEO, Global Governance Services Limited - an international perspective - Corporate Governance for Non-listed companies, in his keynote speech stressed that a strong business case has to be made in favour of raising corporate governance standards for the success of the initiative. He said that internationally, Corporate Governance codes for listed companies were an established practice and this phenomenon was now expanding to segments other than listed companies.
He said that in Asia, Pakistan was the first country that had embarked upon such an initiative. In his welcome address, Moin Fudda, Country Director, CIPE, said that non-listed sector had tremendous economic importance as compared to about 650 listed companies. There were about 50,000 non-listed companies, a diverse group, with both for-profit and not-profit entities of various legal forms and business size.
Zahid Zaheer, CEO, PICG, explained that there were various reasons for promoting good governance in non-listed companies, including protection of the interest of minority shareholders and other stakeholders, including employees. Razzak Dawood, former federal minister of Commerce was of the view that good corporate governance was a journey not a destination.
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