Day: December 7, 2021

The federal cabinet has approved extension in service of Chairman Securities and Exchange Commission of Pakistan (SECP) Aamir Khan for another three years.

This is the first in the history of SECP that a sitting chairman has been awarded an extension. Prime Minister Imran Khan first appointed Aamir Khan as Commissioner SECP in December 2018 and he was later elevated as Chairman in August 2019.

Advisor to the Prime Minister on Finance and Revenue Shaukat Tarin apprised the federal cabinet of the reforms, featuring legal, structural, regulatory, operational and product development initiatives, by SECP in the last three years. The reforms have been envisioned to further the government’s vision of improving ease of doing business, expanding financial inclusion, digitizing corporate processes, developing the capital market, and strengthening enforcement of laws.

SECP has achieved end-to-end digitalization of the company registration process, which has resulted in nearly 60% growth in the number of registered companies over the past three years, accumulating to 156,000 companies as of November 30, 2021, from 93,000 in December 2018, according to an SECP report.

In order to simplify, speed up and make enforcement and supervision effective, SECP has separated the functions of Supervision and Adjudication, by establishing two centralized autonomous divisions. All the SOPs and processes related to the initiation and conclusion of regulatory enforcement actions were revamped for ensuring independent adjudication and supervision.

SECP in collaboration with the Pakistan Stock Exchange (PSX) has introduced an alternative board, the Growth Enterprise Market (GEM) to encourage smaller companies to list equity securities and avail the benefits of listing at the exchange. The first SME was successfully listed at the GEM Board last week.

The commission introduced the electronic-IPO system in coordination with the Central Depository Company of Pakistan Limited (CDC). Through the said system investor(s) can submit IPO applications electronically and make subscription payments through e-banking channels. The simplification of the IPO process resulted in eight equity- and two debt-IPO issues that took place during the year. The companies have raised Rs. 56 billion through IPOs in 2020-21, the highest in the last 10 years. In addition, the highest number of companies listed during the year as compared to the last 5 years.

Moreover, SECP introduced Exchange Trade Funds (ETFs) in the capital market, for which the definition of investment advisory services was amended to enable brokers to launch low-cost ETFs. PSX has successfully launched two Exchange-Traded Fund’s (ETF), which will uplift the investor base in the capital market by providing a new, low cost and well-diversified investment avenue for the investors.

For enhancing the ease of doing business and strengthening market participants, measures have been taken to reduce market costs for which the fee structure of the PSX, CDC and NCCPL have been rationalized. In order to enhance investor outreach, a framework has been stipulated for enabling online account opening. To increase the retail base, a simplified account opening process has been introduced for low-risk investors whereby the maximum investment limit of the Sahulat Account has been enhanced from Rs. 500,000 to Rs. 800,000. These steps resulted in an increase of 14,000 new investors witnessed at PSX.

Furthermore, SECP is in the process of implementing the new trading engine at PSX which will improve trading operations of the stock market, but also lead to a much stronger surveillance system of the front-end regulator by December 2021.

Yet another milestone toward improving financial inclusion, growth of the private sector, the launch of Secured Transactions Registry (STR). The STR will be used for the registration of security interests/charges created by entities other than companies on their movable assets such as receivables, intellectual property, inventory, agricultural products, petroleum or minerals, motor vehicles, etc.

Moreover, SECP’s regime for regulated financial institutions has been rated as largely compliant in FATF action plan (08 out 08 action items) and in the Post Observation Period Report of the Mutual Evaluation Report (54 out of 54 recommended actions), as a result of these reforms undertaken by SECP.

To promote documentation and corporate investment in the real estate sector, SECP has amended the Real Estate Investment Trust (REIT) regulations, triggering a number of REIT management license requests and REIT schemes applications. Moreover, to provide ease of doing business to startups, private companies and SMEs were permitted to raise capital by receiving immovable property, intangible assets and services, instead of only cash and were allowed to offer employee stock option plans to employees.

Moreover, SECP eServices is integrated with the Federal Board of Revenue (FBR) and the Employees Old-Age Benefits Institution (EOBI) at the federal level and with business registration portals of Punjab and Sindh at the provincial level, according to the SECP report.

Source: Pro Pakistani

Ambassador of the Republic of Kyrgyzstan to Pakistan, Ulanbek Totuiaev, has stated that the Karakoram Pass offers Kyrgyzstan and Pakistan an excellent opportunity of enhancing trade and economic cooperation.

The Ambassador was addressing a seminar on “Business, Education and Tourism Opportunities in Kyrgyzstan” organized by The Diplomatic Insight, Institute of Peace and Diplomatic Studies, Riphah Institute of Public Policy, Riphah International University, Islamabad.

Showing interest in joining the China-Pakistan Economic Coordinator (CPEC), he highlighted that the geostrategic position of Kyrgyzstan, being located at the crossroads between Central Asia and China and having the Karakoram Pass to Pakistan, opened up excellent opportunities for regional trade and economic cooperation and assisted the country in establishing relations with the regional states in all areas of mutual interest.

He said the Kyrgyz Republic and Pakistan enjoyed cordial, brotherly, and friendly relations. He added that Pakistan was among the first countries to recognize the independence of the Kyrgyz Republic. “Since the establishment of diplomatic relations, our countries enjoy excellent political relations and regularly exchange visits at the highest levels,” he underlined. He also highlighted the potential of tourism sectors of the two countries for mutual collaboration.

He mentioned that during the last 30 years, the two countries exchanged presidential visits twice; the Kyrgyz Prime Ministers also visited Pakistan two times; the Pakistani Prime Ministers went to Kyrgyzstan four times; and, Speakers of the Kyrgyz parliament visited Pakistan twice.

In this context, he said, it was also important to note that Foreign Minister, Ruslan Kazakbaev, would arrive in Islamabad on December 15 to participate in the Extraordinary Session of the OIC [Organization of Islamic Cooperation] Council of Foreign Ministers on December 16-17.

The Ambassador also highlighted that Kyrgyzstan was celebrating the 30th anniversary of its independence this year. He said that during the last 30 years, Kyrgyzstan was steadily and peacefully developed in terms of democracy and freedom. Currently, Kyrgyzstan is passing through an important period of political changes, he underscored.

Source: Pro Pakistani

Country Director World Bank (WB) Najy Benhassine called on Chairman Federal Board of Revenue (FBR) Dr. Muhammad Ashfaq Ahmed at FBR Headquarters on Tuesday to review the implementation of the WB’s flagship program, Pakistan Raises Revenue (PRR).

The Country Director WB appreciated the efforts made by Chairman FBR and his team for implementing the program in letter and spirit and also expressed satisfaction with its progress.

An FBR team, accompanying the Chairman, highlighted the areas where FBR and WB could achieve the agreed program deliverables with mutual efforts. The team underlined the avenues for making the program more effective in terms of achieving its objectives and ensuring a sustainable increase in revenues. The WB team assured FBR of continuing support in the implementation of the program.

Member (Reforms & Modernization) FBR Ambreen Iftikhar, Project Director (PRR) Nadeem Bashir and Chief (Reforms & Modernization) FBR Khalid Jameel also attended the meeting.

Source: Pro Pakistani

Advisor to the Prime Minister on Finance and Revenue, Shaukat Tarin, held a meeting with a delegation of Turkish Coca-Cola company, led by its Vice President Corporate Affairs, Sinan Cem Sahin, at Finance Division on Tuesday.

Welcoming the delegation, the Advisor stated that the government was committed to providing a conducive environment to the investors and businessmen and had taken steps for ensuring the ease of doing business.

The delegation delivered a presentation on the business operations of the Turkish Coco-Cola company in Pakistan. The delegation appreciated the efforts made by the government to promote investment and business activities in the country and shared a number of recommendations and proposals pertaining to duties and taxes as well as the proliferation of the beverage industry in Pakistan.

The Advisor assured the delegates of full government support in their business endeavors. He said the government would take all possible measures to facilitate the businesses as it believed in investment and export-led growth. He urged the company to enter into the export market as, he assured, the government would fully support their initiatives.

Sinan Cem Sahin appreciated the steps taken by the Pakistani government to facilitate businesses and investors and to encourage foreign investment in Pakistan.

Source: Pro Pakistani