Corporate Governance Codes in Pakistan: A Review

Abstract

This article examines the current corporate governance laws and rules in Pakistan. Strong corporate governance is crucial for market stability and investor confidence in any nation, developed or underdeveloped. In Pakistan, a Corporate Governance Code was first established in 2002. Later updates occurred in 2012, 2017 and finally in 2019. Although corporate governance practices and concepts are well established across most of the world, Pakistan's corporate governance literature is still limited, and the current rule, as it was enacted in September 2019, hasn't received any commentary or analysis. This research aims to bridge this gap by revealing the evolution of Pakistan’s corporate governance and contributing to the continuing discussion on the effect of the fresh legislation using a comparative methodology and a documentary analysis of the changes.