The amendments in the Companies (Amendment)
Ordinance, 2002, await approval by the President, the commissioner
(Enforcement) of Securities and Exchange Commission of Pakistan, Abdul
Rehman Qureshi told, would further facilitate corporate sector in
operations. They would bring greater efficiency in regulation of
companies, he said.
Describing the history of companies law in Pakistan,
he said originally the Companies Act, 1913 governed the companies. It
was replaced by Companies Ordinance, 1984. Amendments, however,
continued to be effected in it from time to time. The Ordinance was
reviewed twice comprehensively, that is, in April 1991 and 1999.
The latest amendments were drawn up by a committee
set up by the SEC in October 2001 after elaborate consultations with the
professional accounting bodies, trade organisations, stock exchanges,
associations and legal exports for improvement of the Ordinance.
The new law provides for registration of single
member companies (SMC) for the first time in Pakistan. The system is
already in vogue in UK and ECC with good results. At present, Mr.
Qureshi pointed out, at least two persons are needed for the formation
of a private company. The new concept would not only be beneficial to
the investors but also go a long way in the expansion of a disciplined
The SEC, he said, might suggest to the government to
exempt SMCs from tax to encourage their establishment because ultimately
it would accelerate documentation of economy.
TURKMEN GAS PACT LIKELY THIS MONTH
An agreement to build a massive gas pipeline across
Turkmenistan to Pakistan, stalled by two decades of civil war in
Afghanistan, is expected to be signed later this month, a source told
AFP on Tuesday.
The presidents of Afghanistan, Pakistan and
Turkmenistan "plan to sign an accord on the construction of the
Turkmen-Afghan-Pakistan pipeline in the Turkmen capital from October 26
to 27," an official in the Turkmen oil and gas ministry said,
speaking on condition of anonymity.
A meeting of the heads of a committee set up to
implement the pipeline plan is to take place from October 17 to 18 ahead
of the gathering to prepare a framework agreement on the pipeline's
construction, the official added.
Both gatherings are expected to be attended by a
representative of the Asian Development Bank, which has been one of the
main backers of the pipeline plan.
RAZAK TO ATTEND 5-NATION RICE MOOT
Commerce Minister Abdul Razak Dawood on Tuesday left
for Bangkok, Thailand, to attend five-nation international rice moot
being held on Wednesday.
China, Thailand, Vietnam, India and Pakistan are
participating in this moot.
Razak will pursue the participating nations for
bringing stability in rice prices, and demand protection of patent
rights of Pakistan in "Basmati" category of rice.
He will also be meeting with the trade ministers of
China, Vietnam, and Thailand and agriculture minister of India.
Pakistan rice ranks seventh in terms of foreign
exchange earning. Private sector has been allowed to export rice freely;
Pakistan exports Basmati rice to Dubai, Oman, Saudi Arabia, UK, Bahrain,
Iran, Qatar, Kuwait, Mauritius, Sharjah and Yemen.
ECC ASKS FOR 30 DAYS OF OIL STOCKS
The Economic Coordination Committee of the Cabinet (ECC)
on Monday discussed the position of oil products and directed the
authorities concerned to arrange "30 days of stock" to meet
Official sources told that the ECC, which was
presided over by Minister for Finance Shaukat Aziz took into account the
possible attack on Iraq by the United States and decided that instead of
having last year level of 15/16 days of stocks of oil, there must be 30
days of stock to meet any urgent needs.
SBP ASKED TO RESTRICT LEASING TO LOCAL GOODS
The government has directed the State Bank of
Pakistan (SBP) to restrict consumer financing to only locally
manufactured goods to promote local industry.
A commerce ministry official told on Sunday that the
leasing facility was being misused by foreign companies due to a
"technical mistake" by the State Bank of Pakistan.
Early last month, the federal government had decided
to launch a scheme of consumer financing by providing small loans to the
individuals to purchase household goods like motorcycles, refrigerators,
television, etc., through all commercial banks.
M-1 GOES TO LOCAL CONTRACTORS
The Pakistan Motorway Contractors Joint Venture (PMCJV)
on Monday emerged as the lowest bidder for the completion of remaining
work of Islamabad-Peshawar motorway (M-1) project with a bid price of
This bid price is apparently lower than a negotiated
price tag of Rs12.5 billion agreed to with the same contractor around
six months ago but the final price would be around Rs800 million higher
due to certain conditions attached with the bid.
FBS YET TO RELEASE LSMI GROWTH RATES
The Federal Bureau of Statistics (FBS) has yet to
make public the growth rates of the large scale manufacturing industries
(LSMI) occurred during the first two months of the current financial
As a matter of policy, the FBS was bound to make
public much before the statistics showing LSMI growth rates in
July-August period, well-placed sources told.
When contacted an official source said that the FBS
was collecting information from three major sources — Central Board of
Revenue (CBR), Ministry of Industries and provincial bureaus statistics
— regarding production of LSMI.