GovnRiskTM Index launched in Pakistan

General General Business News

Karachi, October 08, 2012 (PPI-OT): Pakistan Institute of Corporate Governance (PICG) in collaboration with Mettle Consulting, UK launched GovnRiskTM Index on October 8, 2012, the first being constituted in an emerging market after successful launches in the UK and USA.

The GovnRisk™ Index identifies, defines and measures governance risks of firms in Pakistan and facilitates well governed firms in retaining and attracting both local and foreign investment.The launch, held on the Trading Floor of the Karachi Stock Exchange, was sponsored by the Institute of Capital Markets. Industry leaders like ICI and PPL have already subscribed to the GovnRisk™ Index.

PICG President and CEO, Mr. Fuad A. Hashimi, started the event with a brief introduction on PICG’s role in spreading best corporate governance practices in Pakistan and providing well-governed corporations a platform to effectively communicate to market analysts and investors, locally and overseas,using a trusted and internationally benchmarked indicator like the GovnRiskTM Index.

Mr. Nadeem Naqvi, Managing Director of Karachi Stock Exchange, stated, “Consideration of Tail Risk has become a key element in determining overall riskiness of any investment. Recent history demonstrates that poor governance is perhaps the biggest trigger of Tail Risk as it is usually hidden from standard risk evaluation metrics. A GovnRiskTM Index, as proposed by PICG can go a long way in highlighting Tail Risk for investors and business.”

Dr. Andrew Tucker, CEO of Mettle Consulting, gave adetailed presentation on the GovnRiskTM Index, in which he discussed the basis for the index, its methodology and key operational benefits to subscribing companies. During his presentation, Dr. Andrew Tucker said, “’We look forward to working with major companies in Pakistan to prove their superior governance risk levels and so attract regional and global investors to this very exciting market.”

The British Deputy High Commissioner and Director for UK Trade and Investment in Pakistan, Mr. Francis Campbell, in his address to the audience, congratulated PICG and Mettle Consulting onthe successful collaboration between the two countries and on the launch of the GovnRiskTM Index.He stated, “Pakistan is a lucrative market and home to over 600 foreign companies enjoying high return on investments.

The country offers numerous opportunities in financial, retail, energy, security and other sectors. This initiative introduced by PICG and Mettle Consulting will prove to be a useful mechanism to confidently attract investors to this market.”

The keynote address was delivered by Mr. Muhammad Ali, Chairman, Securities and Exchange Commission of Pakistan in which he highlighted the need for companies in Pakistan to compete globally by enhancing their corporate governance standards, more so due to the increased competition between global markets to attract capital and the use of various factors by investors to gauge companies that demonstrate a sustainable track record. He felt that the timely launch of the GovnRiskTM Index in Pakistan, following the revised Code of Corporate Governance 2012 was an important milestone in helping organizations achieve this goal.

In his closing remarks, Syed Javed Hassan, CEO of Institute of Capital Markets, thanked the audience, KSE, SECP and PICG and Mettle Consulting for their support in making the launch a success. He said that the introduction of the GovnRiskTM Index would have a positive impact on investor confidence and that he looked forward to working with all the stakeholders in spreading awareness to ensure incremental growth in the participation of subscribers to the GovnRiskTM Index.

For more information contact:
Pakistan Institute of Corporate Governance
Suite # 316, The Forum,
Khayaban-e-Jami, Block-9, Clifton,
Karachi-75600
Phone: (92-21) 5306673-74,
Fax: (92-21) 5306672,
E mail: info@picg.org.pk

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