LCCI asks govt to focus on good governance

Suggests corporate governance model should not be same for all countries

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged both the government and private sector to focus on good governance, which is a must for economic revival of the country.

“Good governance is inevitable for both the government and business community, but businesses, in particular, need to strive for the implementation of sound corporate governance practices to improve performance and boost investor confidence,” said LCCI President Sheikh Muhammad Arshad and Vice President Nasir Saeed in a statement.

“Corporate governance is also essential in ensuring transparency, strong and balanced economic development and minimising wastage,” they added.

The LCCI office-bearers said such governance led to a good flow of capital as well as minimised corruption, risks and mismanagement besides lowering capital costs.

“The companies that have good corporate governance structures always perform better and every organisation should have structures that ensure safe growth.”

They stressed the need for some modification in the global corporate governance model, saying it could not be the same for all countries as ground realities and economic conditions were different in every country.

“Pakistan has its own culture and traditions, therefore family influence over business here matters more than in any country of the world.”

They said like any developing economy, Pakistan also housed a large number of small and medium enterprises (SMEs), which not only employ a major segment of the workforce but also contribute to a great deal to the economy.

Published in The Express Tribune, August 23^rd, 2016.

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