Corporate Governance In Pakistan

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The manner in which a company’s affairs are or should be performed in order to protect the shareholder and stakeholders is one of the definitions of corporate governance. Security and exchange commission of Pakistan has taken a few activities for the adequacy of corporate governance in Pakistan. Most importantly it was focused that addition of the autonomous directors (INED) in the Pakistani public sector organizations is vital for accomplishing the better position in the global business sector. SECP is likewise persistently making improvements in the strategies so as to accomplish the greatest effectiveness and to incorporate the changing happening in the worldwide business market and its consequence on the local market. Yet the standards …show more content…

Few years back, the then Federal Finance Minister Dr. Abdul Hafeez Shaikh admitted that the Public sector enterprises (PSE) of Pakistan are inefficient, poorly managed and burden on the national exchequer. The PSEs in Pakistan includes Pepco, Railway, PIA, Pakistan steel, NHA, Utility Stores, PASSCO, TCP and many more. Such losses are consuming national resources, it weakens the economy and increase the national debt. The PSE’s have outlived their useful live and instead of contributing to the national wealth they have in fact become a burden. The resources that should be used for the betterment of people, are being consumed by these enterprises. Some example of failure of PSEs in Pakistan are: 1. Power …show more content…

Railway: Pakistan railroad is managing to lose Rs 5 crore each day of the year. At Pakistan Railways, the overdraft now remains Rs 48 billion. Pakistan Railways (PR) is confronting a financial deficiency of roughly Rs 40 billion and has so far shut down thirteen traveler trains to address financial constriction. Auditor General of Pakistan report said extortion, wastage of assets, failure in recovering outstanding dues and other financial abnormalities adding up to billions of rupees were the explanations behind the losses. PR additionally sustained loss of Rs 1,324.13 million because of the non-recovery of lease and rental charges from different government and private associations. The Pakistan railway's poor administration, pitiful internal structure, carelessness, overstaffing and corruption from the grass level to the top administration drives the Pakistan Railway which was considered as the most income generating division towards its

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