Daily Times

A draft for reforms of Pakistan’s capital market is pivotal in order make market vibrant sources of resources mobilisation.

Addressing ‘3rd Financial Reform for Economic Development (FRED), Dr Shamshad Akhtar, former caretaker Finance Minister and former Governor, State Bank of Pakistan has said that during caretaker set up this draft was prepared and authorities were now finalising it for broad reforms to be introduced in capital market.

She said that financial crisis of 2008 has brought at forefront significance of ethical, transparency and auditing practices. “Quality of auditing for me is critical for soundness of economy, business, corporate and stability of finance systems.”

Dr Shamshad stressed for enhancing efficiency of country’s tax system saying existing potential is less than half of what country is collecting. “The country can easily increase current tax to GDP ratio to 22-23 percent. The steps should be taken to reduce avoidance of taxes”, she maintained.

James A Brumby, Director Governance Global Practices-World Bank, congratulated new government of Pakistan led by Prime Minister Imran Khan and vowed to continue Bank’s support in achieving economic goals. Highlighting importance of common global practices in auditing and accounting in mobilising resources, Brumby said that if Pakistan slows down to find ways to face global challenges it would be laggard in years to come.

Eminent speakers from International Federation of accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA), South Asian Federation of Accountants (SAFA), World Bank, India, Malaysia, Nepal, Pakistan, Philippines, Sri Lanka and Vietnam, Institute of Chartered Accountants of Pakistan (ICAP) and Institute of Cost and Management Accountant of Pakistan (ICMAP) jointly hosted the event.

FRED forum started as a joint initiative of World Bank and CAPA under support and endorsement of IFAC. The partnership has subsequently embraced SAFA and ASEAN Federation of Accountants (AFA) in order to deliver FRED throughout the region.

The theme of forum this year was ‘Maximising private sector finance and solutions for development, role of accountancy profession’. The forum probed into ways of strengthening public financial management, as an essential pillar to create conditions conducive to flow of private capital, domestic and foreign, into productive investments and to reduce illicit financial flows.

FRED Forum 2018 explored how accountancy profession was gearing up to meet new demands of augmented role of private sector in providing finance and solutions for development.

Experts also highlighted topic like fostering an enabling environment-private sector investments for development, gearing for future, new skills for profession, building investor trust through effective public sector institutions-impact on accountancy profession and regional priorities FRED a forum for growth. Manoj Fandis, President CAPA said, “CAPA looks forward to a stronger, sustainable accountancy profession that will remain relevant and is future ready-a vision that we all can contribute towards.

President ICAP, Riaz Rehman Chamdia highlighted importance of auditing and accounting for development and resources mobilisation of country’s economic system so that confidence of investors’ is built. The theme of conference is not only important for Pakistan but for region as well, he added.

Published in Daily Times, September 25^th 2018.