Category: Business

Islamabad – The President has promulgated the Companies Ordinance, 2016, on November 11, 2016, in order to replace the Companies Ordinance, 1984. On this occasion, the Finance Minister, Senator Mohammad Ishaq Dar, said that the Companies Ordinance, 2016, has been promulgated, after extensive consultations with all stakeholders, in order to encourage and facilitate best international corporate practices in Pakistan.

The Companies Ordinance, 2016, contains provisions for simplifying the procedure for incorporation of companies, enabling maximum use of technology, conversion of physical shares into book-entry form in unlisted companies, and encouraging paperless environment at all levels. In order to ensure maximum participation of members in the decision-making the process of the company, the Companies Ordinance, 2016, encourages the use of modern electronic means of communication.

It also includes special provisions to facilitate small and medium enterprises. The Companies Ordinance, 2016, also includes provisions for Shariah certifications of companies and requirements for real estate companies for providing enhanced protection to the investor. Furthermore, the Companies Ordinance, 2016, provides protection to independent and non-executive directors to encourage inclusion on the board, as well as provisions for the manner of selection and maintenance of data bank of independent directors. It aims to address the issues relating to the protection of the interest of minority shareholders and creditors.

The Companies Ordinance, 2016, also introduces other reforms such as relaxations for free zone companies, registration of agricultural promotion companies for the development of agricultural sector, and the establishment of Investor Education and Awareness Fund. It includes provisions for registration of valuers, dispute resolution mechanism through Mediation and Conciliation Panel, passing of members’ resolution through circulation,as well as simplified provisions for expeditious Mergers and Acquisitions. In addition, Companies Ordinance, 2016, emphasises maximum disclosures by Pakistanis to the local regulatory authorities in respect of investment in foreign companies. It also provides facilitation and regulation of Public Sector Enterprises.

Under the Companies Ordinance, 2016, the Securities & Exchange Commission of Pakistan (SECP) will maintain a Companies’ Global Register of Beneficial Ownership, which will have a complete record of the beneficial ownership of the substantial shareholders and officers in local and foreign companies doing business in Pakistan. Moreover, it will be binding on the foreign company operating in Pakistan to provide complete information of its directors, officers and/or beneficial owners. In order to ensure adequate measures against fraud, money laundering and terrorist financing, Companies Ordinance, 2016, empowers the SECP to investigate and also conduct a joint investigation. Furthermore, provisions requiring officers of a company to take adequate measures to curb such violations have also been included.

The Finance Minister remarked that the Companies Ordinance, 2016, has been promulgated to provide relief and incentives to the corporate sector, especially small and medium-sized companies, in order to give immediate impetus to the economy and stimulate economic growth. He said that there was a strong need to revamp the thirty-two years old Companies Ordinance, 1984, in order to provide an improved competitive legal framework for the corporate sector in Pakistan. He said that during various stakeholder consultations, market experts and the business community had expressed unanimous support for enacting Companies Ordinance, 2016, at the earliest, as it would help address long-standing demands of the business community.

The Finance Minister said that the Companies Ordinance, 2016, will reduce the cost of incorporating and doing business, which will enable Pakistan’s corporate sector to be competitive in the international markets. He welcomed the various reforms under the Companies Ordinance, 2016, including use modern communication technology and simplified regulatory procedures. He said that new measures, such as the Companies’ Global Register of Beneficial Ownership, will curb corruption, help address challenges related to off-shore investments, and ensure transparency in governance.

The Finance Minister appreciated the efforts of the SECP, the Ministry of Finance, and the various stakeholders who have taken the time and effort to provide their constructive comments and recommendations, leading to the finalisation and promulgation of the Companies Ordinance, 2016.

ISLAMABAD: Pakistan’s economic growth in fiscal year (FY) 2016 soared to 4.7 percent—the highest rate in eight years and a significant increase from the previous year’s 4.0 percent, says a new World Bank Report.

The World Bank noted that South Asia continues to lead global growth, expanding by 6.8 percent in FY16. Like others in South Asia, Pakistan’s growth was driven by domestic consumption that continues to compensate for weak global demand.

According to press release issued on Thursday, the report warned that Pakistan’s low rates of investment and declining export competitiveness, however, remain a concern.

“Pakistan continues to make good progress in restoring macroeconomic stability. Building on this Pakistan needs to push forward with deeper structural reforms that spread benefits more widely, and the World Bank stands ready to support the reforms agenda” says IllangoPatchamuthu, World Bank Country Director for Pakistan. Growth acceleration will depend on the implementation of structural reforms, such as energy and taxation and implementation of the China Pakistan Economic Corridor (CPEC). In the long term, growth will be driven by increased investment in both physical and human capital, with increased focus on better nutrition, health and education outcomes.

The WB highlighted Pakistan’s success in reducing poverty over the last decade and a half – but contrasted this with the lack of progress in health, education and nutrition outcomes since 2010.

“Pakistan has made significant progress in reducing poverty over the last decade. Based on the revised poverty line adopted in early 2016, the percentage of people living below the poverty line decreased from 64.3 percent in FY02 to 29.5 percent in FY14. This reduction in poverty is corroborated when analyzing other data, such as asset ownership”, says Muhammad Waheed, Senior Economist and lead author of the report. “But stunting rates have been unchanged for decades and health and education outcomes have shown little improvement since 2010. By reinvesting its economic gains in health and education systems, Pakistan can make growth matter for all its citizens.”

The report projects that the pace of Pakistan’s economic growth will accelerate to 5.4 percent in FY18. A moderate increase in investment (related to CPEC projects) is expected to contribute to an acceleration of growth, which will continue to be driven by public and private consumption.

Karachi, Pakistan –  In a move aimed at further strengthening its footprint across the wider Middle East and Africa region, Mastercard, a leading technology company in the global payments industry, today formally commenced its operations in Pakistan, with the opening of a dedicated Mastercard office in Karachi.

Building on the company’s growing presence in the market since the 1990s, Mastercard Pakistan Private Limited will provide a wide range of industry-leading payments services, including debit, credit, prepaid, corporate, Mastercard Payment Gateway Services, Mastercard Rewards Solutions and digital payment solutions.

Mastercard’s recent achievements in Pakistan include the global launch of Masterpass QR, the country’s first interoperable digital payment service that allows banking consumers to use their mobile banking app to pay for in-store, bill payments (invoices) and for delivery with one secure account. The service is expected to benefit a large number of existing and potential customers with a fast, secure and convenient payment experience on mobile banking apps.

“Pakistan has always been a key strategic market for Mastercard and in the last couple of years, we have further sharpened our focus in the market to tap into the country’s tremendous growth potential and appetite for innovation in payments technology. We are proud of the strong business relationships we share with all the prominent partners across the country, and look forward to collaborating and engaging with them on a deeper level to advance the cause of financial inclusion in Pakistan and drive the country’s shift from cash to a cashless economy,” said Aurangzaib Khan, Area Head, Pakistan and Afghanistan, Mastercard.

Mastercard is also at the forefront of driving online payments in Pakistan, by powering two of the key acquiring banks, including Bank Alfalah and MCB Bank. Recently, Mastercard also introduced HomeSend, a remittance solution with Meezan Bank, one of the key Islamic financial institutions in the country. Enabling card payments for smaller and micro merchants, Mastercard launched the first Mobile Point-of-Sale (mPOS) service in the country in collaboration with Habib Bank Limited in 2015.

Dedicated to expanding the reach of its industry-leading offerings across Pakistan, Mastercard currently has 17 key issuers in the country, covering the entire spectrum of payment card issuance from debit and credit, and corporate cards.

Karachi –  A delegation from The Australian High Commission in Islamabad recently visited the head office of the Central Depository Company of Pakistan Limited in Karachi. The delegation was headed by Her Excellency Margaret Adamson, Australian High Commissioner to Pakistan. Other dignitaries included Mr. Saeed Ahmed, Deputy Governor, State Bank of Pakistan and several senior level members of the corporate community including Mr. Nauman K. Dar, President & CEO, Habib Bank Limited also attended the event. Senior representatives of Pakistan Capital Market were also present.

Mr. Muhammad Hanif Jakhura, CEO – CDC, welcomed the delegation and gave a detailed presentation to the attendees on the success story of CDC and its pivotal role in the development of Pakistan’s capital market. The attendees were also briefed on the business and operations of CDC’s subsidiary, ITMinds Limited.

The Australian High Commissioner acknowledged the positive impact of CDC on the Pakistan Capital Market. She looked forward to learning more about the full range of CDC’s contributions and market shaping initiatives. In particular, she expressed her desire to play the role of a catalyst for Australian financial institutions to do more business with Pakistani companies and the government.

ISLAMABAD –  Mobilink posted a growth of 17 percent on its year over year organic revenue for the quarter ended 30 September, 2016.

The company has reported Rs38.
5 billion post-merger consolidated revenue for both companies (Mobilink and Warid), up from Rs25.
9 billion as reported in Q3 2015.
Successful data monetisation initiatives, attractive bundle offers and the unification of the tariff portfolio, together with continued 3G network expansion have been stated as the major reason for growth.

Mobilink and Warid CEO Aamir Ibrahim said that he is pleased to report third quarter results that reflect stronger customer demand and business performance.
“Our stand-alone revenues have shown an increase of 17 percent owing to the strength of Jazz services portfolio and our ever growing subscriber base”, he added.

He said that the telecom sector has been indicating growth since many years, adding that Pakistan Telecommunication Authority (PTA) should ensure up-gradation of telecom infrastructure in the country, which has become choked with the increasing number of users.

LAHORE – Top Uber riders deserve a top Uber experience therefore the company has launched a monthly reward programme namely Uber VIP to thank their loyal riders in Pakistan.

Top riders who make more than 10 trips a month will enjoy premium services such as top quality cars, special giveaways and more.

“Top Uber riders deserve a top Uber experience. That’s why we’re lifting the velvet rope and welcoming in our most loyal riders in Pakistan with Uber VIP,” reads a statement on Uber’s website.

The service is currently available to users in Karachi and Lahore only. Users who meet the criteria would be notified of their status through Uber’s official app.

Under the new VIP service top riders would enjoy; Premiums Services, such as highest-rated driver-partners and top cars, Exclusive Giveaways that include monthly perks and Priority Support whereby feedback will be addressed with top priority.

The VIP service will not have any additional cost says Uber, however fewer VIP cars will add to wait times for VIP users. VIP riders need to take a minimum of 10 rides a month to keep the service active.