Pakistan – Corporate law & corporate governance
CHAPTER 2: National Action Plan Priority Areas and Proposed Actions
3.2. NAP Priority Areas
3.2.1 | Financial Transparency, Corruption and Human Rights Standards in Public Procurement Contracts (page 18)
‘As established during the NBA and consultative process, lack of financial transparency especially in relation to corruption and bribery are prevalent in Pakistan. These have a direct correlation with human rights as the lack of financial transparency contributes to money laundering, terror financing and tax evasion, which negatively impact social development programmes and human rights. Additionally, the nexus between corruption and the adverse impact on human rights needs to be explicitly highlighted in legislation and policies, and in the working of law enforcement bodies.
Various laws and regulations have been introduced by the State of Pakistan to curb corrupt practices and activities involving bribery. Similarly, enforcement mechanisms have also been established to ensure the effective implementation of the laws and regulations prohibiting corruption and activities involving bribery. […]’
Proposed Actions
- Federal (page 18)
‘9. Pass the Whistleblower Protection and Vigilance Commission Bill 2019 to ensure protection of whistle-blowers disclosing information related to financial discrepancies and corruption.
Performance indicator(s): Enactment of the Whistleblower Bill
UN Guiding Principle(s): 1, 3
Relevant SDG(s): Goal 16 – Peace, Justice and Strong Institutions’
This information is also covered under Appendix I: Implementation Plan, Proposed Action 9 designating the Ministry of Human Rights and the Ministry of Law and Justice as Leading Entities (page 46).
’12. Further strengthen judicial processes and create awareness on issues related to Anti-Money Laundering/Counter Terror Financing (AML/CTF) to encourage financial transparency.
Performance indicator(s): Number of trainings on AML/CTF
UN Guiding Principle(s): 1, 2, 3, 25
Relevant SDG(s): Goal 16 – Peace, Justice and Strong Institutions’
This information is also covered under Appendix I: Implementation Plan, Proposed Action 12 designating the Ministry of Human Rights, the Ministry of Law and Justice and the Anti-Corruption and Economic Crime Wing (Federal Investigation Agency) as Leading Entities, and designating the National Accountability Bureau, the Securities and Exchange Commission of Pakistan, the State Bank of Pakistan, the Provincial Home Departments, the Provincial Law Departments, the Supreme Court of Pakistan, the High Courts, the District Courts, the Federal and Provincial Judicial Academies, the Federal and Public Service Commissions, the Anti-Narcotics Force, the Anti-Terror Courts, the Provincial Anti-Corruption Bodies as Additional Entities (page 46).
ANNEX II: Actions Already Undertaken by Pakistan
A. General Measures Relevant to Business and Human Rights (page 72)
‘The Public Sector Companies (Corporate Governance) Rules 2013 have been promulgated, which require that a Code of Conduct be created which articulates acceptable and unacceptable behaviour, and ensures that adequate systems are in place for the identification and redressal of grievances from unethical practices.’
B. Measures Relevant to NAP Priority Areas
i. Financial Transparency, Corruption and Human Rights Standards in Public Procurement Contracts (page 73)
‘The Public Procurement Regulatory Authority has also been established at a Federal and Provincial level to assess procedures and take measures to improve governance, management, transparency, and accountability of all work related to public procurement. Should any changes require specific laws or rules, the Authority can recommend new laws and policies to the State to be enacted.’
‘Pursuant to Pakistan’s grey-listing by FATF, several laws and guidelines relating to AML/CTF have been passed. The Financial Monitoring Unit has been set up to investigate cases of suspicious transactions. The regulations and policies promulgated by the State in this regard aim to enhance financial transparency of different business entities.’