Weekly Update: South Asia

Afghanistan – This week the CIPE Afghanistan team held a meeting with the Afghanistan Chamber of Commerce and Industry (ACCI) to discuss progress toward implementation of the recommendations made in the Afghanistan National Business Agenda, which was launched in March 2011. ACCI reported two key policy successes. First, the Ministry of Commerce and Industry developed an Industry Support Policy, which was ratified by the Council of Ministers and Cabinet in January 2012. Second, electricity was provided to industrial parks in Mazar-e-Sharif, and the price of power was decreased to 5 Afs/KW.

Pakistan – CIPE had a major breakthrough in its initiative to reform Pakistan’s 2002 Code of Corporate Governance. The revised code was launched at an April 10 event in Karachi by Finance Minister Dr. Abdul Hafeez Sheikh. Nearly 150 representatives of leading companies were in attendance, as well as the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Governor of the State Bank, and the Managing Director of the Karachi Stock Exchange. In their speeches, both the Finance Minister and the SECP Chairman lauded CIPE’s contribution to this important reform process. The new Code, which will be enacted through an official notification in the next two weeks, focused on greater levels of disclosure and transparency, as well as more effective human resources policies and succession planning. The event received extensive coverage in the local press, including: www.dailytimes.com.pk/default.asp?page=2012%5C04%5C11%5Cstory_11-4-2012_pg5_7; www.brecorder.com/top-news/1-front-top-news/52652-code-of-corporate-governance-2012-launched-.html; www.pakistantoday.com.pk/2012/04/11/news/profit/the-doctor-prescribes-new-medicine/; www.thenews.com.pk/Todays-News-13-13854-GDP-to-achieve-four-pc-growth-rate-this-year-Hafeez; and dawn.com/2012/04/11/code-for-corporates-launched-no-new-tax-in-budget-hafeez/.

 Pakistan – In cooperation with the Pakistan Institute of Corporate Governance, CIPE organized a conference in Karachi on the topic of “Corporate Governance and Effective Boards in Public Sector Enterprises.” Eighty participants discussed a range of issues faced by the boards of state-owned enterprises in carrying out their fiduciary duties. The speakers agreed that there needs to be minimal intervention by the government in the operations of such firms in order to ensure their transparency and efficiency.