Thursday, November 22, 2012

Journalists and Media Launch Code of Conduct to Combat Corruption, Hate Speech and Pakistan’s Culture of Dirty Politics



Journalists and Media Launch Code of Conduct to Combat Corruption, Hate Speech and Pakistan’s Culture of Dirty Politics

Pakistani media leaders have launched a historic code of conduct for journalism in an unprecedented effort to combat corruption and political pressure in the upcoming national election campaign.

'Elections in Pakistan are threatened by corruption,' said Mazhar Abbas, Chair of the Coalition for Ethical Journalism and Director of Current Affairs at Express TV News. 

'Some people think the upcoming election will be bought not fought, but this code will ensure that journalism is able to function freely, safely and, above all, ethically, during the election.'

Media organisations and journalists from across Pakistan, and working on all media platforms are being urged to follow the code which includes a detailed check-list on how media can deliver ethical, impartial and honest reporting.  

Only by doing so the media will serve the public interest, promote democracy, freedom and tolerance say the Coalition for Ethical Journalism, which unites  journalists and media support groups across the country.

”This code is an antidote to the poison of hate speech and intolerance,' said Aidan White, Director of the Global Ethical Journalism Network, which has been working closely with the Pakistan Coalition. 

“Journalists and media leaders are determined to support ethical reporting and media independence. We hope all politicians and the election authorities will support this unprecedented call for effective self-regulation.”

Also backing the code was Fahad Hussain, leading anchor at WAQT who told the meeting: 

“This code is much needed. It is a start and will help media stakeholders face up to the enormous problems that are currently facing journalists at all levels. We must get buy in and support from all media owners and editors.”

“Media is the fourth pillar of the state,” said MQM Parliamentarian, Farooq Sattar, also speaking at today’s meeting.  “Media plays an important and responsible role. Pakistan is 65 years old, but our free media is hardly ten years old. They are learning and maturing.

“We need a free media but freedom without responsibility is no freedom. The stakes are very high because media lays the foundations of democracy. In a nutshell the media can help to prevent pre and post-election rigging, disillusionment and apathy of voters. This is why independent, honest and impartial reporting is so important. “

The code was discussed and ratified at a series of round table meetings of senior media leaders in Karachi and Lahore (20, 21 November) and finally today in Islamabad (November 22).  

Over 40 leaders and influencers from print and electronic media, mainstream political parties and civil society networks attended a round table conference held at Islamabad’s Hillview hotel.

The Pakistan Coalition plans to ask the Election Commission of Pakistan and the country’s major political parties to note the code and to respect the rights of journalists and media to report fairly and without any interference during the upcoming period.

Code of conduct for Pakistan Media and Elections and Election Coverage Checklist for Pakistan media is given below. More information can be obtained from:

Coalition Co-coordinator: info@pakmediaethics.org  
Pakistan Coalition Chairman: 
Muhammad Ziauddin, muhammad.ziauddin@tribune.com.pk 
International Director: Aidan White aidanpatrickwhite@gmail.com

--------------------------------------------------------------------------------------

Code of Conduct for Pakistan Media and Elections

1.   The aim of journalism on all media platforms is to provide coverage that is fair, unbiased and ethical.

2.   This is particularly important in reporting of political affairs and the news, commentary and information services provided for citizens and voters at times of elections.

3.   Media and ethical journalists in Pakistan strive at all times to

a)    avoid discrimination against any political party, political leader or candidate

b)   provide information that will assist citizens to better understand the issues, policies and perspectives of all democratic participants in the election process

c)    ensure all communities are made fully aware of the election process and how they can freely exercise their right to vote

4.   Media recognise that it is not always possible to cover all candidates in an election, but they shall strive to ensure that all candidates representing democratic values and a credible and significant body of opinion shall be subject to journalistic scrutiny and appropriate media coverage.

In this regard media shall apply principles of fairness in the allocation of time and space in provision of coverage to political parties and candidates while recognising that balance and fairness are achieved over a reasonable period of time.

5.   Media shall encourage journalism of the highest ethical standards in their election coverage and shall, in particular,

a)    Ban all forms of intolerance and expression that can be interpreted as incitement to violence or hatred,

b)   Avoid all forms of rumour, speculation and disinformation, particularly when these concern specific political parties or candidates,

c)    Forbid the publication of unsubstantiated allegations or personal remarks or opinions that are designed to be offensive and malicious and verify information regarding individuals or parties which is critical or negative before it is telecast, broadcast or published,
6.   Media respect the values of tolerance and respect in Pakistan society and are committed to excluding all forms of intemperate and abusive opinion that has the effect of promoting public disorder or intolerance.

7.   This pledge to avoid inflammatory expression shall apply to coverage of political activities at all levels including when it applies to the reporting of statements or remarks by political leaders or candidates.

8.   Media recognise that the power of elections rests with the people of Pakistan and the voters. They will exercise caution in the use of opinion polls and agree to work together to ensure that announcement of results is managed in an equitable and transparent manner ensuring that all media are able to report accurately the results as they emerge from the ECP and the election control room.

9.   All media shall ensure that they and their staff are fully prepared for the task of election coverage and agree to follow the common principles for preparation and organisation of election coverage as set out in the attached checklist for ethical and fair reporting.

10.                All media shall provide staff with guidance and advice on safety and security issues and provide journalists with appropriate support including insurance.

11.                Candidates in Pakistan elections shall not act as news anchors, interviewers or presenters of any type of programme during the election period. 

12.                In addition, appearances by candidates or political party representatives in non-political programmes that were planned or scheduled before the election may continue, but no new appearances will be arranged and broadcast during the period.

13.                When a candidate takes part in an item about his or her particular election, then candidates of each of the major parties shall be offered the opportunity to take part. However, if they refuse or are unable to participate, the item may nevertheless go ahead.

14.                Broadcasters must offer the opportunity to all candidates take part in a particular electoral area reports and discussions. This also applies to independent candidates. However, if a candidate refuses or is unable to participate, the item may nevertheless go ahead.

15.                All media shall give the audience regular information about appropriate websites or other information source listing all candidates taking part in the elections.

16.                Pakistan media agree to establish an election media monitoring group comprised of respected, non-partisan figures to protect the press from aggression and to investigate any incidents.

a)    The group will follow the coverage of the election and register all incidents of threats or intimidation or other improper violation of their right to report freely. 

b)   It shall further be committed to protect the interests of media and should work under the umbrella of the Pakistan Broadcasting Association.

c)    This group shall deal with all complaints and issues arising from media coverage of the elections and shall strive to ensure professional respect for the principles and values set out in this code.

d)   The group shall ensure that media act together to protect each other from acts of violence or political intimidation and that fair and transparent systems are used for the allocation of state and political advertising related to the elections.

17.     Pakistan media agree to submit this code and its commitments to the election commission and to all political parties, who are asked to recognise and support the self-regulating commitment of media, and to respect journalists and their right to report freely.

---------------------------------------------------------------------

Election Coverage: A Checklist for Ethical and Fair Reporting

Introduction

The challenge of objectivity, impartiality and balance in media is faced daily by Pakistan journalists, but there is no test of professionalism greater than that posed by a political election. During an election the impulse to manipulate media and to control information is strongest among ruling parties and political leaders running for office.

The media in Pakistan recognise that their first duty is to provide citizens with access to all the facts, opinions and ideas being canvassed in the campaign. The principles of Pakistan media in coverage of an election are set out as follows:

·         Our role is primarily to be the link between voters, the community and the political leadership.

·         We are not the voice-box for politics alone; we also provide access to media to ordinary people so that citizen's voices can be heard.

·         We shall review and underscore our professional guidelines and rules to ensure ethical practice in the reporting of all aspects of the election.

·         We will remember that elections can bring out the worst in politicians (and journalists) – extreme opinions, extravagant promises and intemperate speech.

·         Reporters and editors shall be wary of violent rhetoric and offensive opinion, particularly about minorities and vulnerable groups.

·         Keeping the peace is the job of the police, but journalists should not do anything that may incite intolerance or hatred.

The following guidelines provide some basic advice for journalists and media in their election coverage:

Remain independent and Keep Your Distance


Pakistan journalists are citizens too and are entitled to their own political opinions, but they must be non-partisan in their journalism, especially when reporting elections.

Media opinions on politics will be kept to properly identified editorial columns and programmes.

In the news and current affairs reporting we must be fair to all parties and candidates.

Practicing journalists should not take part in any election activity, standing for election, speaking at party rallies or making financial donations.

Journalists and media representatives never take gifts, cash or in kind. There will be a political price to pay. If inducements are offered, check with the editor.

Journalists, broadcasters and publishers have a responsibility towards the society as a whole. Journalism was originally intended to be, and must continue to be, a useful instrument in the general interest rather than mouthpieces of individual, particular interests.

This explains why it is vital that politicians keep their hands out of the affairs of journalists. But it also means that journalists cannot be prevented by their advertisers or even their proprietors from acting professionally. Media should establish internal mechanisms to avoid undue pressure on journalists and to reinforce professionalism and independence.

Give Voters a Voice and Confront All forms of Bias

The most important people in an election are not the politicians - the party leaders or candidates. It is the Pakistani people and particularly those who vote. So give the voters a voice.

Media will provide information on the election process. They will examine the promises of people canvassing for votes and pose relevant questions that focus on the needs of citizens and the community.

We will show to voters that we are on their side and we will confront all forms of undue editorial bias in election coverage.

Allegations of bias in the news media are not unusual, particularly at election time. Politicians and public interest groups may regard the omission of certain news items or issues from newspapers and radio and television news bulletins as deliberate bias.

More often than not, journalists make these choices on the basis of sound professional judgment. But mistakes are made. When deadlines are tight and pressures are greatest, the weighing of these factors may be less thorough.

In general, journalists strive for fairness and for decisions made solely on the basis of news value. That is something which journalists always try to respect, and that is sometimes difficult for many outside journalism to understand.

Of course there is political pressure. Often it comes from the traditional supporters of particular media. This base may be identified by social status, language or other cultural dimension. Liberal newspapers tend to be left of centre in their editorial columns; conservative newspapers will favour right of centre politics.

 

Partisan journalism can be good journalism. Campaigning journalism in favour of human rights issues has often nurtured the best tradition in the profession, but the political opinions of the editorial columns should not interfere with the process of news gathering, news selection and placement.

Allegations of deliberate, political bias are easy to make and often difficult to refute.
The gathering, editing and publishing of news involves decisions by people who inevitably bring their own background, values and prejudices to bear on deciding what to select, emphasize and colour as news.

But even if there is personal bias, there must be balance in the representation of a range of views. Lack of balance can lead to unfair representation of politics as well as unacceptable stereotypes that are unfair to women, homosexuals, and socially marginalized groups and minorities.

 

Media can express biased opinion. The editorial column, which serves as the institutional voice of a newspaper on a wide range of issues, must be biased because it expresses an opinion, even though such opinion must always be based on confirmed facts. Columnists and television anchors also have the right to express their opinions.

But none of this should lead to a lack of fairness in news reporting where balanced coverage of events is expected. Reporters, editors and proprietors must avoid actions which sacrifice even-handed journalism for partisan self-interest.

The suppression of essential or important facts and the deliberate distortion of other facts through wrong or improper emphasis must be forbidden.

News readers should not give preferential news coverage to one party or another and using deceptive "camera angles" to disguise or enhance the size of campaign rallies is not acceptable and using technology to enhance or diminish images of a candidate.

It is the media's job to act fairly. Remember that many politicians are skilled at manipulating people, including media. In the 2012 presidential elections in the United States billions of dollars are being spent on television time often to avoid politicians having to talk to free media.

Journalists can confront this approach by ensuring that they provide a link between election news and the reader, listener or viewer. News coverage should be a bridge connecting candidates and the voters.

In the age of social networks and open journalism the desire of the people to become more involved in the political process is here to stay.

Journalism should not focus on the glitz and the glamour of personality or character politics and the inevitable "horse race" model of reporting. We need to dig deep into the substantive issues that bring news values into line with concerns of the voters.

Getting Organised

Journalists covering elections need to know what they are talking about.  We shall train our staff in election reporting and the importance of political pluralism.

Reporters and editors will ensure that they are fully briefed on all aspects of the election from the point of view of the voter as well as the political candidates.

In particular this includes

·         understanding the constitutional and legal background to the holding of elections as well as the process of the election itself,
·         knowing details about the parties, candidates and political manifestos,
·         understanding the issues that are important for voters,
·         using credible sources who provide insight to make sense of it all.

There should also be full understanding of safety and security issues. Journalists and media staff should not take unnecessary risks. Campaign events can be robust, even dangerous, journalists should at all times be aware of safety concerns.

Each media organisation agrees to follow the minimum standards set out below for the editorial organisation of election coverage:

1: Details: To obtain from the electoral commission regarding all the details of the coming poll: registration date, start and closing day of the campaign period, Election Day specifics (how the polling will be organized, timetable for election returns, etc.).

2: Rules:  To study the election rules: voting system, electoral laws, poll watching, laws governing international observation delegations, use of public opinion surveys, political advertising regulations, access to state media, electoral expenses limitations, etc.).

3: Guidelines:  To work according to the common guidelines and code of conduct agreed by Pakistan media.

4: Audience awareness:  To explain to readers and viewers your reporting rules, how you are going to cover the campaign and why and ensure that they are able to register concerns and complaints as appropriate.

6: Roles and responsibilities To establish an editorial team for the elections. Election coverage is the political desk's golden hour but should not be its exclusive preserve. All departments can be asked to perform duties according to their skills.

Specialised writers will analyze issues on their beat (economics, health, foreign affairs, economics, labour, education), others will compare competing political programmes, and some will scrutinise speeches and position papers, to track inconsistencies and expose propaganda.

7: Review procedure:  To appoint an editorial election panel to review delicate questions that may arise as the campaign develops. It should include the editor-in-chief, the relevant department head, and a few distinguished commentators or reporters.
8: Backup systems To plan for emergencies: what do you do if something breaks down on your side (your computer crashes, when one of your reporters is arrested or wounded, etc.) and on the side of the government (failure in the collation of results, charges of irregularities, etc.)

9. Clarity of content and contact with audience:  To promote civic education and carefully and repeatedly explain the principles and techniques of voting and what the election will lead to (a new parliament, separation of powers, transparency, etc.) and to introduce an open line to readers so they might ask questions on specific points of the campaign and air their views.

10: Plans for polls: To ensure that public opinion polls are not elections and do not become the dominant feature of election reporting. Unprofessional polls are bad news, for voters and for media. Some points:

·         Never commission surveys that do not stick to the highest standards and never print them without fully explaining the conditions and the limits of the survey.

·         Expose any fraud in a political party or newspaper survey. Never forget that polls will never replace old-style political reporting.

·         Avoid using unattributed online information. The social networks are useful, but they are a rumour-mongering paradise.

11: Fact files and Background Reporting: To begin the editorial preparation well ahead of Election Day: prepare profiles of major candidates, close-ups on most electoral districts (economic base, population profile, major problems, party dominance).


12: Fair Access for Politicians: To allocate time and space for political comment by parties and politicians on a fair and rotating basis. Stop the process at least a week before election day so as not to give undue advantage to one candidate or to the propaganda of one party.

13: Beware of Media manipulation:  To avoid stunts and cooked-up events from media-savvy parties and politicians that are designed just to grab headlines. And to avoid publishing political parties' press releases without checking them. These shall as a source for a more balanced story.

14: Attribution: To be credible and always attribute information and clearly identify and attribute any information coming from sources other than obtained from independent reporting.

15: Review process: To review how our team cover the campaign and to compare our performance with other media. 

-----------------------------------------------------------------------------------------------


Tuesday, November 20, 2012

Media Meet to Agree Ground-Breaking Code for Reporting Elections in Pakistan



Media Meet to Agree Ground-Breaking Code for Reporting Elections in Pakistan



The challenge of objectivity, impartiality and balance in media is faced daily by Pakistan journalists, but there is no test of professionalism greater than that posed by a political election, states the Pakistan Coalition for Ethical Journalism, which today launched a historic code of ethics for the media in reporting the forthcoming elections.

The code was discussed at a meeting of senior media leaders in Karachi today and further meetings will be held in Lahore (November 21) and Islamabad (November 22).

The Pakistan Coalition plans to ask the Election Commission of Pakistan and the country’s major political parties to note the code and to respect the rights of journalists and media to report fairly and without any interference during the upcoming period.

"It is very important that the media realizes both its rights and its responsibilities," said Kamal Siddiqi, Editor of Express-Tribune and a member of the Pakistan Coalition for Ethical Journalism "In Pakistan being a journalist during election time makes you very vulnerable. You are pressurized from different sides. This code of conduct or a checklist of do's and don'ts keep things in perspective and helps us report the truth and report on issues that matter."

This view was strongly supported by Aidan White, Director of the Global Ethical Journalism Network, which has been working closely with the Pakistan Coalition.


"Election coverage is the biggest test of ethical journalism," he said. "Pakistan media are aiming to set standards that will ensure upcoming elections are properly reported, free of corruption and that all voices from all sections of society are heard. It is a bold initiative which should be supported on all sides."

The Coalition urges media to observe guidelines, which includes issues such as banning rumour & unsubstantiated allegations, not inciting hatred or sectarianism, banning inflammatory language, promoting tolerance and ensuring all parties and candidates are given fair & equal coverage.



Azhar Abbas, CEO of GEO TV, and also a leading member of the Coalition added his support, “Ethics are important because the media, especially the electronic media, is still in its infancy,” he said.

“There are lots that the industry still needs to learn. We have taken great strides in many areas, such as fighting for our rights, freedom of speech and democracy. But now we need to look from the inside.  It’s time to have a clear set of ethics and a code of conduct so that the media can be judged and held accountable. This is never more important than during an election.

“For us, it is clear that public interest is the number one priority over ratings. Elections are after all, about the public. If we lose ratings during the election then so be it. Public interest must, and will, come first.”

Shafqat Abbasi, Press Council of Pakistan, also voiced his support for the initiative.  “In regional media there is no concept of ethical journalism.  Journalists often become the spokesman of political parties and candidates,“ he said. “We must strike out the culture of paid news where local officials can use their power and influence to affect what is written.  In some areas journalists face threats and harassment if they don’t write the stories that they are told to. A strong code of conduct will help to protect journalists. Proper training of journalists is also essential.”


Code of Conduct for Pakistan Media and Elections

1.   The aim of journalism on all media platforms is to provide coverage that is fair, unbiased and ethical.

2.   This is particularly important in reporting of political affairs and the news, commentary and information services provided for citizens and voters at times of elections.

3.   Media and ethical journalists in Pakistan strive at all times to

a)    avoid discrimination against any political party, political leader or candidate

b)   provide information that will assist citizens to better understand the issues, policies and perspectives of all democratic participants in the election process

c)    ensure all communities are made fully aware of the election process and how they can freely exercise their right to vote

4.   Media recognise that it is not always possible to cover all candidates in an election, but they shall strive to ensure that all candidates representing democratic values and a credible and significant body of opinion shall be subject to journalistic scrutiny and appropriate media coverage.

In this regard media shall apply principles of fairness in the allocation of time and space in provision of coverage to political parties and candidates while recognising that balance and fairness are achieved over a reasonable period of time.

In line with their responsibility to be inclusive and independent, media will canvass the voices and opinions of all sections of society and all democratic groups in their coverage of political affairs and elections.

In doing so, media shall scrupulously observe the distinction between advertising and editorial and shall not allow forms of advertising or unpaid political promotion to be disguised as editorial content. Paid political broadcasts must always be identified as such.

5.   Media shall encourage journalism of the highest ethical standards in their election coverage and shall, in particular,

a)    Ban all forms of intolerance and expression that can be interpreted as incitement to violence or hatred,

b)   Avoid all forms of rumour, speculation and disinformation, particularly when these concern specific political parties or candidates,

c)    Forbid the publication of unsubstantiated allegations or personal remarks or opinions that are designed to be offensive and malicious and verify information regarding individuals or parties which is critical or negative before it is telecast, broadcast or published,
6.   Media respect the values of tolerance and respect in Pakistan society and are committed to excluding all forms of intemperate and abusive opinion that has the effect of promoting public disorder or intolerance.

7.   This pledge to avoid inflammatory expression shall apply to coverage of political activities at all levels including when it applies to the reporting of statements or remarks by political leaders or candidates.

8.   Media recognise that the power of elections rests with the people of Pakistan and the voters. They will exercise caution in the use of opinion polls and agree to work together to ensure that announcement of results is managed in an equitable and transparent manner ensuring that all media are able to report accurately the results as they emerge from the ECP and the election control room.

9.   All media shall ensure that they and their staff are fully prepared for the task of election coverage and agree to follow the common principles for preparation and organisation of election coverage.

10.                All media shall provide staff with guidance and advice on safety and security issues and provide journalists with appropriate support including insurance.

11.                Candidates in Pakistan elections shall not act as news anchors, interviewers or presenters of any type of programme during the election period. 

12.                When a candidate takes part in an item about his or her particular election, then candidates of each of the major parties shall be offered the opportunity to take part. However, if they refuse or are unable to participate, the item may nevertheless go ahead.

13.                Broadcasters must offer the opportunity to major candidates to take part in discussions covering a particular electoral area. This also applies to independent candidates. However, if a candidate refuses or is unable to participate, the item may nevertheless go ahead.

14.                All media shall give the audience regular information about appropriate websites or other information source listing all candidates taking part in the elections.

15.                Pakistan media agree to establish an election media monitoring group comprised of respected, non-partisan figures to protect the press from aggression and to investigate any incidents.

a)    The group will follow the coverage of the election and register all incidents of threats or intimidation or other improper violation of their right to report freely.  It shall receive and consider relevant information from media monitoring groups including the Press Council of Pakistan and PEMRA.

b)   It shall further be committed to protect the interests of media and should work under the umbrella of the Pakistan Broadcasters Association, the Pakistan Federal Union of Journalists, the Pakistan Newspaper Society and the Council of Pakistan Newspaper Editors.

c)    This group shall deal with all complaints and issues arising from media coverage of the elections and shall strive to ensure professional respect for the principles and values set out in this code.

d)   The group shall ensure that media act together to protect each other from acts of violence or political intimidation and that fair and transparent systems are used for the allocation of state and political advertising related to the elections.

16.     Pakistan media agree to submit this code and its commitments to the election commission and to all political parties, who are asked to recognise and support the self-regulating commitment of media, and to respect journalists and their right to report freely.



Friday, November 16, 2012

Promoting entrepreneurial growth in Pakistan


Promoting entrepreneurial growth in Pakistan
Entrepreneurs seek Government support for creating an enabling environment fostering entrepreneurial culture.
Celebrating the Global Entrepreneurship Week, twenty prominent Pakistani entrepreneurs, government officials and academic leaders gathered at a round-table meeting on ‘Creating an Enabling Environment for Entrepreneurship to Grow’ in Islamabad today. Panellists explored ways to promote entrepreneurial growth in Pakistan, emphasizing that entrepreneurs have the potential to create solutions that can transform Pakistan and generate new jobs for millions of young graduates entering the workforce.

The event culminates ‘Global Entrepreneurship Week’ and follows six days of workshops for emerging Pakistani entrepreneurs on how to start and grow a successful business.  The workshops were facilitated by the U.S. Embassy in Islamabad and held at Abasyn University from November 10 to 15.

After avoiding the collapse of the global financial and economic system, governments around the world are now focused on building a foundation for future growth. In addition to safeguarding the economic recovery, the world is facing a number of transformative challenges, such as an increasing scarcity of natural resources, significant demographic shifts, and the environmental and social implications of climate change.

In dealing with these challenges, governments have taken an increasingly strong interest in entrepreneurship. Speaking on the occasion, Amir Jahangir, Young Global Leader of the World Economic Forum and CEO Mishal Pakistan, said “Entrepreneurs are recognized as important drivers of economic and social progress, and rapidly growing entrepreneurial enterprises are viewed as important sources of innovation, employment and productivity growth”. Some of the most influential enterprises of our time began relatively recently as small entrepreneurial ventures, he further added.

The participants emphasized the need for the capacity building of the media on creating Entrepreneurship as a new beat in Pakistan. They emphasized the importance of a media fund, which can encourage young entrepreneurs and journalists to create more relevant content on entrepreneurship. The initiative would also be able to create a new breed of mediapreneurs and journalists to understand and report on the opportunities and challenges of being an entrepreneur in Pakistan.

Speaking about ‘Global Entrepreneurship Week,’ Muhammad Farrukh Mahmood, co-founder of Moftak Solutions, said, “We are thankful to the U.S. Embassy for giving us the opportunity to hear from Pakistan’s leading entrepreneurs about the challenges they face in starting and running a business.  The workshops this week helped to bridge the gap between industry and academia, and inspired youth to become entrepreneurs to contribute to the growth of this country."

Many recent public discussions have addressed the challenges that entrepreneurs face in Pakistan. The roundtable moved the discussion to the next level by developing a concrete set of recommendations to the Government of Pakistan on how to overcome the challenges and improve the business environment in Pakistan.

Panellists focused their discussions on the pivotal role of Pakistan’s private sector in spurring job creation.  Were an entrepreneurship ecosystem to take root, panellists said, Pakistan’s economic growth could accelerate.

Many governments are therefore trying to actively promote entrepreneurship through various forms of support. The World Economic Forum has been actively engaging early-stage and later-stage high-growth companies for many years through its Technology Pioneers programme and its community of Global Growth Companies.


Creating Enabling Environment for Entrepreneurship to Grow in Pakistan - Key Recommendations for action:

  • Triple helix” entrepreneurial ecosystem components: industry, academia and government);
  • Changing policies, laws and regulations to make it easy for startups;
  • Improving access to finance—equity, debt and venture capital—and use of movable assets as collateral;
  • Removing instruments of rent-seeking , which dwindle resources available for entrepreneurs;
  • Building growth cities – urban development in line with the new growth strategy;
  • Developing and managing brand, guarantees, warrantees/returns;
  • Embedding entrepreneurship in education and business incubations;
  • Releasing the energy of the domestic sector;
  • Developing Science and Technology policy and its implementation;
  • Engendering entrepreneurship;
  • Role of intellectual property rights (IPR), including protection of trademarks, websites, copyrights and patents;


Wednesday, October 31, 2012

Pakistan faces tough challenges on developing its financial markets


Pakistan faces tough challenges on developing its financial markets
Pakistan ranks at 58 out of 62 economies in the Financial Development Index of 2012, losing 3 points from its position of 55 in 2011. The Financial Development Report 2012 depicts commercial and retail access to finance shrinking in Pakistan.

Financial systems across the world are stagnating, leading to challenges for a global economic recovery, according to the fifth edition of the World Economic Forum’s Financial Development Report 2012 released today.

“The Financial Development Report shows that financial systems in advanced and emerging economies are stalling”, said Giancarlo Bruno, Senior Director at the World Economic Forum. “Macroeconomic uncertainty, as well as concerns related to regulation, contributes to inhibiting the financial industry from funding much-needed growth.”

Amir Jahangir, Chief Executive Officer - Mishal Pakistan, a country partner institute of the Center for Global Competitiveness and Performance, World Economic Forum said that “the Financial Development Report 2012 ranks 62 of the world’s leading financial systems and capital markets, analysing the drivers of financial system development in advanced and emerging economies to serve as a tool for countries to benchmark themselves and establish priorities for reform”. The rankings are based on more than 120 variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors, he added.

Top 10 performers on the Financial Development Index 2012 
Pakistan continues to show stability on the Financial Development Index of the World Economic Forum on the indicators; cost of closing a business, where the rank of 5 was maintained, also showing stability in frequency of banking crises and output loss during banking crises, Pakistan again secured the top rank of 1 among 62 economies; similarly on the public ownership of banks, which is a percentage of assets held by the 10 largest banks that is located in banks that are more than 25 percent government owned, Pakistan again secured the top rank of 1.

The Report also shows an improvement in the total number of active borrowers from microfinance institutions per 1,000 adults, where Pakistan has improved its position of 12 in 2011 to 9th in 2012. 

Pakistan has shown slight improvements on the strength of auditing and reporting standards, where it is ranked 48 in 2012 as compared to 52 in 2011.

On the pillar of legal and regulatory issues Pakistan has shown significant gains, by improving the burden of government regulations, securing 21 rank as compared to 32 last year. The regulation of securities exchanges has also improved 5 points with a rank of 37 out of 62 economies globally.

The current account balance to GDP, a variable, which is the three-year average of current account balance to GDP, indicates the difficulty Pakistan had in mobilizing the foreign exchange necessary for debt service (from 2009 to 2011) has also improved from 53 last year to 40 in the current year.

The economy has also shown improvements in the “aggregate profitability indicator”, which is based on a three-year average of three measures of profitability: net interest margin, bank return on assets, and bank return on equity, this was measured on an average from 2008 to 2010, Pakistan improved 8 points on this, securing 41 rank on the Financial Development Index 2012.

Other area where Pakistan showed improvement of 14 ranks was the real growth of direct insurance premiums, where Pakistan stands at 30th rank.

However Pakistan showed discouraging performance on various key indicators, where it lost it development advantage on multiple factors, whereas; intellectual property protection (53) and effectiveness of law-making bodies (47) as compared to 48 and 43 from last year.

The distortive effect of taxes and subsidies on competition, which is to what extent does government subsidies and tax breaks distort competition, Pakistan lost its rank from 46 in 2011 to 53 in 2012.

In terms of internet users, Pakistan has seen a decline in its internet penetration, where it lost its position of 54 to 61 as compared to 2011 and 2012 respectively.

On the external vulnerability indicator, which is the sum of several measures of external exposure as a percentage of foreign exchange reserves, Pakistan has lost an alarming 14 points and it stands at 20 in 2012. However Pakistan still maintains a development advantage in this area.

Whereas the world has shown improvements in the banking system, such as Tier 1 capital ratios and non-performing loans to total loans, Pakistan has declined in these two indicators, securing 26 and 57 out of 62 economies in 2012.

The decline in deposit money bank assets to GDP (52); the private credit to GDP which is a variable showing private credit by deposit-money banks and other financial institutions as a percentage of GDP also declined from 48 in 2011 to 56 in 2012.

The Financial Development Report (FDR) shows an alarming increase in banks overhead costs, which is the bank overhead costs as a percentage of total assets has increased from the rank of 22 in 2011 to 45 in 2012, impacting a probable profitability of the banks in the coming years.

On the equity market development pillar Pakistan has shown discouraging performance, where stock market capitalization to GDP has slipped from 43 to 50, stock market value traded to GDP from 33 to 43 and Pakistan’s rank on number of listed companies per 10,000 people has dropped from 36 to 43.

The worst news for Pakistan on the FDR is the commercial and retail access finance, where ease of access to credit has been deteriorated to 43 from 30 last year; similarly ease of access to loan has also become difficult, where the Report has ranked it 40 this year as compared to 28 in 2011.   

The market penetration of bank accounts, which is the number of commercial bank accounts per 100,000 adults has also declined 19 points in 2012, where Pakistan stands at 59 now, simultaneously debit card penetration has also lost development advantage from a rank of 37 in 2011 to 59 in 2012, showing staleness on part of the growth in the banking system in Pakistan.

On the global front, the Report shows that liquidity appears to be stabilizing in a number of top economies, as highlighted by the fact that turnover velocity rebounded in 2011, moving closer to 2006 levels. However, such gains are offset by considerably weaker domestic market capitalization levels across the world’s stock exchanges.

Topping the Index, Hong Kong SAR came in 1st for a second consecutive year as a result of benefits from a large and efficient banking system, well-developed infrastructure and robust equity markets. Despite these strengths, Hong Kong has a relatively underdeveloped bond market and its financial sector has yet to be fully liberalized.


The United States and the United Kingdom also remain in the same positions as last year, 2nd and 3rd, respectively. Both countries have highly developed financial markets, particularly their foreign exchange and derivatives markets, but they struggle with relatively inefficient banking systems. Banking system stability and currency stability are also areas of weakness. The US, however, has more developed equity and bond markets, while the United Kingdom has stronger corporate governance and legal and regulatory mechanisms. Japan and Switzerland each moved up one spot to 7th and 8th space overall. Both countries have improved the size and efficiency of their banking and financial services and have shown improvements in their legal and regulatory framework.

Mishal Pakistan is the country partner institute of the Center for Global Competitiveness and Performance, World Economic Forum. The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders in partnerships to shape global, regional and industry agendas.

The Financial Development Report 2012


Tuesday, October 2, 2012

CONTACT: Peacebuilding Training and Education for SAARC Emerging Leaders


Peacebuilding Training and Education for SAARC Emerging Leaders
SAARC-South Asian Association for Regional Cooperation

December 5-16, 2012, Kathmandu, Nepal

The Conflict Transformation across Cultures CONTACT Programs, is currently accepting applications for the fourth peacebuilding course in Kathmandu. CONTACT has offered world-class training programs in the US for 16 years, and has led 5 programs in Africa.

Selection Criteria: participants will be selected by application, based on their work experience, educational background, English skills, and references. For schedule, location and fees please visit the program website: http://www.sit.edu/graduate/18382.htm

CONTACT is a short-term, concentrated, and intense educational immersion program for rising leaders from around the world who are engaged in responding to conflict, promoting social change, and building sustainable peace. CONTACT offers professional development programs and a graduate certificate program in conflict transformation, leading to a Master’s Degree at the SIT Graduate Institute. With more than 1000 graduates spanning the globe, CONTACT is of proven effectiveness in educating for peace leadership, conflict-sensitive development, and transformative intercultural exchange.

Application deadline for SAARC CONTACT is October 30, 2012

For application, questions and clarifications, please write to contactprogram@sit.edu

Download the CONTACT South Asia application form (DOC)
and be sure to review the full instructions for applying on the How To Apply to the CONTACT South Asia program page.