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Business Recorder
23-04-2025
- Business
- Business Recorder
Revitalised Appellate Bench Registry: SECP enhances quasi-judicial operations
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has enhanced its quasi-judicial operations through a revitalised and more efficient Appellate Bench Registry, reflecting from new appellate bench orders of the SECP. Details issued by the SECP on Tuesday revealed that recognising the critical role of the Appellate Bench as the Commission's final forum for adjudication, Chairman Akif Saeed placed strategic emphasis on institutional reform and judicial efficacy. This focus resulted in the strengthening of the Registry by deploying a dedicated and highly skilled team, along with streamlined internal processes designed to enhance operational performance. These institutional enhancements facilitated the accelerated resolution of long-pending appeals and the successful clearance of a substantial backlog of cases spanning from 2012 to 2020. This progress was achieved while upholding highest standards of legal reasoning, procedural fairness, and reinforcing the jurisprudential depth of the Appellate Bench's decisions. The recent rulings have not only articulated authoritative and well-founded interpretations of key statutory provisions most notably under the Companies Act 2017 but are also poised to serve as essential reference sources for legal practitioners, market participants, and regulatory authorities, thereby playing a pivotal role in shaping and advancing corporate legal jurisprudence in Pakistan. Aligned with principles of transparency and accountability, all Appellate Bench orders are publicly accessible on the SECP official website. Company secretaries, legal professionals, compliance officers, and other corporate stakeholders are strongly encouraged to consult these decisions, which serve as essential reference material for the interpretation and application of corporate laws. Complementing these institutional reforms, the Appellate Bench Registry has also successfully developed a comprehensive digital repository of appellate decisions spanning the last two decades. This cutting-edge internal resource offers section-wise, statute-specific, and year-wise classification of all orders from 2006 to 2025. With intuitive one-click access, the repository significantly enhances the ability of internal stakeholders to retrieve and apply authoritative interpretations and rulings issued by successive benches. This initiative not only strengthens institutional memory but also promotes uniformity and consistency in legal reasoning across the Commission. Demonstrating its commitment to continuous improvement, the Registry has also undertaken a comprehensive review of the SECP (Appellate Bench Procedure) Rules, 2003. The proposed amendments, developed in consultation with internal stakeholders, are aimed to align the procedural rules with evolving legal frameworks and practical operational requirements. The revised draft is currently being finalised for submission to the competent forum for approval and notification, representing yet another step toward enhancing the transparency, efficiency, and legal robustness of the Commission's adjudicatory framework. This transformative phase of the Appellate Bench Registry reflects SECP's forward-looking regulatory philosophy focusing on judicial excellence, stakeholder confidence, and institutional credibility. Chairman Akif Saeed's visionary leadership has been instrumental in driving these initiatives, which collectively reinforce investor trust and underscore the Commission's unwavering commitment to transparency, legal integrity, and the prompt and equitable dispensation of justice across all forums. Copyright Business Recorder, 2025
Express Tribune
25-02-2025
- Business
- Express Tribune
Govt invokes nationalisation order
NIT, in which the government has only 8.9% shares, had offloaded its 23% shareholding in PECO, which the government termed illegal. photo: FILE Listen to article The bureaucracy is trying to take over management of a publicly listed company by invoking the "notorious" 53-year-old Nationalisation and Economic Reforms Order of Zulfikar Ali Bhutto that torpedoed the economy, revealed proceedings of a parliamentary committee meeting. In order to stop further destruction of Pakistan Engineering Company (PECO), the existing shareholders complained to Prime Minister Shehbaz Sharif and Special Investment Facilitation Council (SIFC) National Coordinator Lt General Sarfraz Ahmad, Arif Habib, one of the key shareholders, told the National Assembly Standing Committee on Privatisation on Tuesday. The State-Owned Enterprises (SOEs) Act empowers boards to appoint managing directors of government-owned companies but the government wants to exercise this right in case of a public listed company by invoking the Nationalisation and Economic Reforms Order of 1972, revealed Arif Habib, who owns a 25% stake in PECO. PECO affairs have to be managed under the Companies Act 2017. Then president Zulfikar Ali Bhutto had promulgated the Nationalisation and Economic Reforms Order in 1972 to nationalise industries. This is considered a key reason behind the destruction of Pakistan's private sector and it took 20 years before former prime minister Nawaz Sharif liberalised the economy. "I explicitly conveyed to the board of directors that the company's affairs have to be governed by Economic Reforms Order 1972," said a letter written by a joint secretary of the federal government. Pakistan had enacted the SOEs Act in 2023 as part of its commitments to the World Bank and the International Monetary Fund to free public sector companies from the clutches of bureaucracy and politicians. Habib said that he had taken up the matter with the prime minister and SIFC's Lt General Sarfraz Ahmad. On Tuesday, he also met Minister for Economic Affairs Ahad Cheema on the instructions of the PM. The hurdles created by the bureaucracy in smooth functioning of the economy and businesses were one of the reasons for setting up the SIFC – a hybrid civil-military body. Privatisation Commission Secretary Usman Bajwa said that the cabinet had decided in August last year to place Peco on privatisation list. PECO has been part of the privatisation programme since the 1990s and yet the small company could not be privatised, said Arif Habib. Bajwa said that until the issue of selling 23% shares by National Investment Trust (NIT) in the stock market back in 2003 remained unresolved, the entity could not be privatised. He added that in July 2023, the Cabinet Committee on Privatisation had set up a three-member secretaries committee to resolve the share sale issue but its report had not yet been finalised. The mentioning of just two examples – the 2003 alleged illegal share sale and the 2023 secretaries committee underscores the bureaucracy's attempts to maintain the status quo. The SIFC last month removed a federal secretary, who did not move a summary seeking permission of the Economic Coordination Committee (ECC) for export. NIT, in which the government has only 8.9% shares, had offloaded its 23% shareholding in PECO, which the government termed illegal. In 2004 – a year after the sale, Arif Habib bought those shares and he currently holds 25% shareholding. Usman Bajwa said that the Ministry of Industries had not provided clarity on the sale of 23% shares and "terms it an illegal transaction". "We are not proceeding with PECO privatisation until this 23% sale issue is resolved," he stressed. "People say Pakistan is not progressing. Can it progress when small issues like the sale of shares remain unresolved for decades," questioned Arif Habib. He mentioned that the National Accountability Bureau (NAB) conducted two separate inquiries on the sale of shares and gave the clean chit. "The government does not feel and raise the real issues the company is facing, which are either privatisation or its revival," said Arif Habib. There used to be a time when the company had 25,000 employees and the Chinese PM visited it in 1964, but now it has been restricted to two plots, he said. Habib pointed out that the government "appoints managing directors, who do not know the basics of PECO business". One MD did not even know the price of electric towers and sold them below production cost, he added. The financial crisis follows years of catastrophic mismanagement under former MD Mairaj Anis Ariff, a nominee of the Ministry of Industries whose tenure saw the company incur losses exceeding Rs1.2 billion, according to the board. Standing Committee Chairman MNA Farooq Sattar said that PECO could not be left in the current state of affairs and the Ministry of Industries should have proved its case before NAB. He told the Privatisation Commission to resolve all outstanding issues in the next 40 days. Sattar said that the government should find a solution to the payments owed by PECO. Arif Habib proposed that the government could recover its loans by selling one property located in Lahore. The government should also make a decision whether it wants to privatise PECO or revive it. Arif Habib called for setting up a garments city on the piece of land in Lahore. The company has a monopoly over manufacturing high-voltage transformers, provided it is revamped.
Express Tribune
23-02-2025
- Business
- Express Tribune
ECC for resolving asset issues of DISCOs
Rate of return at 13.27% looks discriminatory when compared with 15% for DISCOs. Illustration: talha khan Listen to article Pakistan's economic managers have emphasised the importance of prioritising the settlement of audit and asset transfer issues of power distribution companies (DISCOs) to pave the way for privatisation of state-owned utilities. The Power Division informed the economic managers that all formalities relating to the balance sheets of DISCOs had been completed and the Water and Power Development Authority (Wapda) and DISCOs' boards had been updated in that regard. During discussion in a recent meeting of the Economic Coordination Committee (ECC), the Power Division emphasised that all issues related to privatisation should be addressed beforehand to avoid any complications later. The economic managers suggested that matters concerning audit and asset transfer should be settled on a priority basis. They also stressed the need for carrying out a reconciliation process prior to the transfer of shares to the president. The ECC was told that opinion of the Law and Justice Division must be obtained before granting retrospective approval to share transfer to ensure that no financial implications were associated with it. The meeting inquired about the updated status of balance sheets and fixed assets of the companies. In response, the Power Division confirmed that all formalities had been completed and reconciliation had been done. It revealed that the respective boards had been updated and the proposal did not require any retrospective approval of shares already transferred, nor were there any financial implications. It was noted that Wapda was fully on board with the proposal. The division informed the economic managers that the government had approved the privatisation of DISCOs, as part of which Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco) and Islamabad Electric Supply Company (Iesco) would be privatised in the first phase. At the time of creation of DISCOs, supplementary business transfer agreements were signed by Wapda and DISCOs, except for Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco), which were to be followed by the transfer of shares in the name of the president of Pakistan. So far, only Iesco, Lahore Electric Supply Company (Lesco) and Multan Electric Power Company (Mepco) have partly completed the process by issuing shares to Wapda, but the next step – transferring shares to the president – has not been taken. Meanwhile, other DISCOs, including Fesco and Gepco, have not made any progress. Besides being a mandatory requirement of the Securities and Exchange Commission of Pakistan (SECP), it was also a condition that prior to privatisation shares of DISCOs should be transferred to the president. The SECP, in its comments, advised the division to follow Section 74 of the Companies Act 2017 and complete Form-3 as per Regulation 41 of the Companies Regulations 2024. It recommended that the transfer of shares must align with the agreements executed between Wapda and DISCOs and suggested that the shares should be in book-entry form in accordance with Section 72 of the Companies Act 2017. Wapda, in its comments, proposed changes to the initial draft summary, which were incorporated in paragraph 5 of the summary. The Finance Division also endorsed the summary. The Power Division submitted the proposals for consideration and approval of the ECC, which included allowing Wapda to transfer shares of Iesco, Lesco and Mepco to the president of Pakistan, so that Wapda and DISCOs may update and clear their books. Approval was also sought to allow Gepco, Fesco, Qesco, Pesco, Tesco, Hesco and Sepco to issue shares to Wapda after completing the process outlined in the Supplementary Business Transfer Agreements, enabling Wapda and DISCOs to update and clear their books. The ECC considered the proposal titled "Transfer of Shares of DISCOs in the Name of the President of Pakistan," and approved it. It allowed Gepco, Fesco, Qesco, Pesco, Tesco, Hesco and Sepco to issue shares to Wapda after completing the process outlined in the supplementary agreements to enable Wapda to transfer shares in the name of the president.
