Speakers at Pakistani conference urge Islamabad to follow Saudi Arabia in digitizing economy 

The photo taken on April 2, 2024, shows a panel discussion at a conference, held at the Islamabad Policy Research Institute in Islamabad, Pakistan. (Photo courtesy: WE World News)
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Updated 02 April 2024
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Speakers at Pakistani conference urge Islamabad to follow Saudi Arabia in digitizing economy 

  • ’E-Governance in Saudi Arabia: Opportunities and Lessons for Pakistan’ hosted at Islamabad Policy Research Institute 
  • Speakers praise Kingdom for diversifying its economy away from being an oil-based one toward digital revolution

ISLAMABAD: Pakistan should draw lessons from Saudi Arabia in digitizing its economy to harness the true potential of its workforce, speakers at a roundtable conference organized by an Islamabad-based think tank said on Tuesday. 

The conference, titled: ‘E-Governance in Saudi Arabia: Opportunities and Lessons for Pakistan,’ was held at the Islamabad Policy Research Institute (IPRI) in collaboration with WE World News. 

Dr. Majid Bhatti, chief executive officer of the National Information Technology Board (NTB), was the chief guest at the event, while Ambassador Vice Admiral (retired) Khan Hasham bin Saddique, who previously served as Pakistan’s ambassador to Saudi Arabia, also attended.

“It was underscored and appreciated that Saudi Arabia with a population of around 40 million has made great strides in information technology, and its desire to digitize the society has transformed it within a span of less than a decade,” IPRI said in a press release.

The speakers praised the Kingdom for diversifying its economy away from being an oil-based one toward a digital revolution, noting that Saudi Arabia had acquired the best talent and expertise from around the world in its pursuit of setting up infrastructure for e-commerce and e-governance. 

“While drawing parallels, it was noted that though Pakistan possesses some of the great talent and industrious initiatives, it is a lack of digital foundations that ails it,” the statement said. 

“This is why Saudi Arabia today is successfully erecting a triangular pyramid of digital society, digital economy and digital governance; and this is rapidly transforming its economy from oil to digital in context.”

Pakistan’s fundamental problem as it took the digital and e-governance route, speakers said, was a lack of facilities to opt for digital financial transactions. 

“This aspect must be studied at length, and similarly by setting up smart cities, Pakistan can address many of its governance-related problems in a better way by documenting it on digitization,” the statement said. 

Speakers at the conference emphasized the importance of digital literacy in Pakistan and the need for transparent infrastructure, adding that factors such as a high cost of energy, lack of infrastructure and absence of regulations were hindering Pakistan from taking strides in e-governance. They said a state-sponsored policy to facilitate the private sector was the need of the hour in order to harness Pakistan’s full potential.


Pakistan regulator amends law to facilitate capital raising by listed companies

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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.