KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has been ranked “7th most effective regulator” on a global scale according to the World Economic Forum’s Global Competitiveness Report 2019.
The most effective improvements were made due to the initiative and strategies adopted by the apex regulator for the corporate sector and the capital markets, supervising and regulating insurance, non-banking financial companies, and private pension schemes, officials told Arab News.
The SECP improved Pakistan’s competitiveness rankings by improving the number of ways to start a business, where Pakistan stands at the global rank of 90 as compared to 96 in 2018.
“Pakistan offers one of the best environments for shareholder governance. Pakistan is the 7th most effective regulator in the world,” Amir Jahangir, Chief Executive Officer of Mishal Pakistan, the country partner institute of the World Economic Forum’s Future of Economic Progress System Initiative, said in a statement issued after his team’s meeting with SECP chairman Amir Khan on Wednesday.
“The index assesses three dimensions of good governance: (1) shareholders’ rights and role in major corporate decisions, (2) governance safeguards protecting shareholders from undue board control and entrenchment, and (3) corporate transparency on ownership stakes, compensation, audits, and financial prospects,” Jahangir explained.
The SECP officials say the strategy adopted by the watchdog is also instrumental in creating more companies embracing disruptive ideas. The SECP is working with other stakeholders to collaborate in creating the legal framework’s adaptability to digital business models, where Pakistan is performing better than 100 other countries in the world.
Digital solutions deployed by the SECP made companies registration and post-incorporation compliance simple, faster and cost-effective. In September 2019, 96 percent of companies registered online through SECP’s eService and 50 percent of companies incorporated the same day. Most importantly, 85 foreign applicants completed the registration of companies from overseas using eService.
“The Commission is working hard to develop new approaches to connect and facilitate its stakeholders, this will bring structural changes in terms of attitude toward entrepreneurial risk and growth of innovative companies, where Pakistan already has an impressive global position of 53 among 141 nations globally,” Khan said.
The areas where Pakistan needs to concentrate are improving e-participation, the strength of auditing and reporting standards, financing for SMEs, insurance premium regulations, willingness to delegate authority. He said that although Pakistan was doing fairly well on “Future Orientation of the Government,” sitting at 82 among 141 countries globally, the country needs to concentrate its policies toward this so further improvements can be achieved in the coming years.
The Global Competitiveness Report 2019, released last week, indicates that the overall ranking of Pakistan has slipped by 3 notches to 110 out of 141 countries mainly in the backdrop of deterioration in 7 out of 12 pillars.
However, the country improved its standing as the most dynamic economy in the world by 15 points 52nd position from last year where it stood at 67 in 2018.