Catalyst for Change: Towards a Model of Conduct Costs in Pakistan

24 04 2016

Reposted from the Conduct Costs Pakistan Blog which I have recently started. As measured by the CCP Research Foundation, in the aftermath of the collapse of Lehman Brothers seven years ago, global “conduct costs” are approaching stratospheric levels and are presently estimated to be $300 billion. But none of the data reflected in the final sum can be traced to Pakistan – a market economy whose legal system closely resembles the English legal system, despite the politically retrograde Islamisation of the 1980s – in clear and unambiguous terms. This blog is written with the ambition of articulating a conduct costs’ model in Pakistan, a developing country which is in need of such analysis so that its 192 million people are put in a position to make informed choices about banking and financial services.

In constitutional terms, a sound basis for the study of conduct costs can be found in Articles 37 and 38 of the Constitution of Pakistan 1973. Laid down in Part II: Fundamental Rights and Principles of Policy, Chapter 2: Principles of Policy of the Constitution, Article 37 requires the state to promote social justice and Article 38 imposes on the state a duty to promote the people’s social and economic well-being. On an alternative level, in The End of Alchemy, Professor Mervyn King relies on all his experience as a central banker to explain the wider dynamics of the global economy. He invites us to embrace the underlying theoretical argument that banks are “the Achilles heel of capitalism”. This attractive proposition is as advantageous a place to begin a study of the banks in Pakistan as it is in the west. Read the rest of this entry »





Incorporation in Pakistan: Part 2

17 08 2012

This entry is a continuation of the last post which dealt with the topic of incorporating companies in Pakistan under the Companies Ordinance 1984 (the “Ordinance”). Foreign investment is crucial for any country’s economy. In an era of globalisation, relocating overseas or doing business in a developing country is quite competitive and investors are spoilt for choice about where to go. There are loads of low cost destinations all over the world. Here, in this post, we will highlight and explore post incorporation requirements for foreign companies in Pakistan which – as an English based and American influenced legal system – offers unique business opportunities to Asian, African, American, European and other businessmen and entrepreneurs. 

  • Any change or alteration in particulars stated in the documents and returns filed at the time of registration under section 451 (Documents to be delivered to registrar by foreign companies) is required to be filed on form 44 with the registrar concerned within 30 days of such change or alteration (Section 452 – Return to be delivered to registrar by foreign companies whose documents, etc. altered). Read the rest of this entry »




Incorporation in Pakistan: Part 1

16 08 2012

This is an international corporate law site edited by an advocate of the High Court of Sindh, Pakistan. Therefore, as someone involved in producing this site, I am taking the opportunity to set things in motion by posting on Pakistani company law which is governed by the Companies Ordinance 1984 (the “Ordinance”). Compliance with the Ordinance is regulated by the Security and Exchange Commission of Pakistan (“SECP” or the “Commission”) which was established under the Securities and Exchange Commission Act 1997

SECP became operational in 1999 and it replaced the older Company Law Division. SECP’s central office is located in the federal capital Islamabad and the Commission also operates company registration offices (“CROs”) in other cities such as Karachi, Lahore, Quetta, Peshawar, Multan, Faisalabad and Sukkur. The SECP is divided into seven divisions and for business and financial law purposes the relevant sections are the (i) company law division; (ii) securities market division; (iii) specialised companies division; and (iv) insurance division.