KARACHI: Dispelling rumors that it was taking measures to do away with ride-hailing giants Uber and Careem, the Sindh government on Tuesday warned the two of strict legal action if they failed to register with the concerned authorities within 10 days.
“We have only asked them to get registered with the transport department of province under the law, but they are not complying and misinterpreting that we are closing down services,” Awais Qadir Shah, Transport Minister of Sindh, told Arab News.
“We have asked them to get registered with the department within 10 days and if they fail to comply with the directions, strict legal action will be taken against them,” he added.
The provincial government said it was taking steps to register ride-hailing service providers following an incident wherein a girl jumped out of a moving cab — which she had booked by using a ride-hailing services’ app — after accusing the driver of harassment.
The driver has denied the allegations. He was arrested by the area police and produced in court, but was later released on bail.
“Different incidents are taking place in the province. The government does not have the information about the legality of the vehicles and the drivers. At least this information must be available to the provincial government so that appropriate steps are taken in case of any mishap,” the provincial minister said.
The move to register ride-hailing companies is not the first initiative of its kind. Last year, a similar decision was taken by the then transport minister who had called for banning the services in case they failed to register with the department. He had to withdraw his plans following stiff resistance from the masses.
Following reports in the local media that the government was looking to ban Careem and Uber in the Sindh province, Careem’s management responded on Tuesday by saying that it was business as usual for the company.
“Careem’s services are running as normal across Pakistan, providing our customers with safe, affordable and comfortable rides. Careem is committed to helping create 1 million jobs in Pakistan by 31 Dec 2020. As a local company, we remain engaged with the respective governments of all provinces for the finalization of frameworks which will not only govern ride-hailing specifically but online marketplaces in general,” the statement said.
Soon after the report, the twitter brigade took to social media censuring the government’ decision in the background of the current state of public transport in the province.
“Strongly condemn Sindh Government’s decision to shut down Uber and Careem in Sindh. For a province without Public Transport, it is a facility for millions of people and full-time job for thousands. Sindh Government has no right to snatch it!”, Shafaat Ali, an actor, tweeted.
Huzefa, a political worker, responded to Ali’s tweet saying: “It is requirement in every country that ride-sharing companies obtain permits from the local government. How can government regulate these companies? In case of any mishap, will the company be responsible or government?”
Under Pakistan’s laws, vehicles registered for non-commercial purposes cannot be used for commercial reasons.
Clock ticking for Uber, Careem to get registered
Clock ticking for Uber, Careem to get registered
- Move aimed at regularizing ride-hailing services, transport minister says
- Sindh government’s decision follows incident where a girl accused a taxi driver of harassment
Pakistan regulator amends law to facilitate capital raising by listed companies
- The amendments address challenges faced by listed companies when raising further capital from existing shareholders through a rights issue
- Previously, listed companies were prohibited from announcing a rights issue if the company, officials or shareholders had any overdue amounts
KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has notified amendments to the Companies (Further Issue of Shares) Regulations 2020 to facilitate capital raising by listed companies while maintaining adequate disclosure requirements for investors, it announced on Monday,
The amendments address challenges faced by listed companies when raising further capital from existing shareholders through a rights issue. Previously, listed companies were prohibited from announcing a rights issue if the company, its sponsors, promoters, substantial shareholders, or directors had any overdue amounts or defaults appearing in their Credit Information Bureau (CIB) report.
This restriction constrained financially stressed yet viable companies from raising capital, even in circumstances where existing shareholders were willing to support revival, restructuring, or continuation of operations, according to the SECP.
“Under the amended framework, the requirement for a clean CIB report will not apply if the relevant persons provide a No Objection Certificate (NOC) regarding the proposed rights issue from the concerned financial institution(s),” the regulator said.
The notification of the amendments follows a consultative process in which the SECP sought feedback from market stakeholders, including listed companies, issue consultants, professional bodies, industry associations, law firms, and capital market institutions.
The amendments are expected to enhance market confidence, improve access to capital for listed companies, and strengthen transparency within the rights issue framework, according to the SECP.
“To ensure transparency and protect investors’ interests, companies in such cases must make comprehensive disclosures in the rights offer document,” the regulator said.
“These disclosures must include details of any defaults or overdue amounts, ongoing recovery proceedings, and the status of any debt restructuring.”
The revised regulations strike an “appropriate balance” between facilitating corporate rehabilitation and enabling investors to make informed investment decisions, the SECP added.
