Draft Companies Bill: SECP seeks balance in regulation

Wants input from business community, says objective is to promote economy

FAISALABAD: A regulated business sector should be promoted on viable grounds to strengthen the national economy, said Securities and Exchange Commission of Pakistan (SECP) Commissioner Tahir Mehmood, as he addressed an awareness session at the Faisalabad Chamber of Commerce and Industry (FCCI) on the new ‘Draft Companies Bill’.

“Additional facilities and incentives have been proposed in the bill by the SECP, in this connection,” he said, adding that efforts were also being initiated to make it more comprehensive, acceptable and result-oriented by inculcating practicable suggestions from concerned stake holders.

He said over regulation was discouraging business entities to switch over to corporatisation and during the last few years, conscious efforts had been made to facilitate and encourage the corporate sector. “This proposed draft is the outcome of sincere efforts.”

Meanwhile, former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Mohammad Adrees said a critical analysis of this draft was imperative to make it acceptable to the business community.

“Pakistan is ranked 124th in terms of ‘ease of doing business’”, noted Adrees, adding that in China, a company could be formed within a day, whereas in Pakistan, the time period is much higher.

He said that it is high time to discuss the pros and cons of this draft bill as after the passage of this Bill, the ultimate beneficiary or sufferer will be the business community. He also requested the SECP to ensure that no clause of any law in Pakistan should be contradictory to Islamic values and norms.

SECP Registrar of Companies Jawed Hussain gave a detailed presentation on the Draft Companies Bill and underlined the aims and objectives of various amendments. “The ultimate objective of this Bill is to facilitate the corporate sector, I hope they would respond and give viable suggestions to make it comprehensive and acceptable to the concerned stakeholders.”

FCCI Acting President Syed Zia Alamdar Hussain said Faisalabad had emerged as one of the most vibrant economic and business centres of Pakistan after Karachi but the member of corporates had been restricted to only 1,054.

He said generally the government policies were framed without any consultation with the business community, which not only complicates problems but also leads to failure in achieving objectives.

Published in The Express Tribune, January 9^th, 2016.

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