Press Release

VIS Reaffirms Corporate Governance Rating of Pak Oman Investment Company Limited

Karachi, September 01, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the Corporate Governance Rating (CGR) of Pak Oman Investment Company Limited (‘POIC’ or ‘the Company’) at ‘CGR-9’. The rating signifies very high level of corporate governance. The previous rating action was announced on August 01, 2022.

Corporate governance ratings are based on evaluation of key governance areas of the rated institution including regulatory compliance, ownership structure, composition and operations of the Board of directors (BoD) and executive management, self-regulation, financial transparency and relationship with stakeholders. The assigned rating is underpinned by a well-established corporate governance framework incorporated at POIC in the context of the Joint Venture (JV) agreement between the two sovereign sponsors - Government of Pakistan (GoP) and Sultanate of Oman (SO). The terms of the JV agreement dictate the Board composition where each sponsor nominates three directors on the Board.

Corporate Governance framework of the Company is considered adequate, with Board & Board Committees being in place and their compositions being aligned with best practices. The Board undergoes both internal and external evaluations to enhance its efficiency. Overall attendance record of Board and its Committees’ meetings was satisfactory.

Recent changes at the Board level involved the retirement and replacement of a director, as well as the appointment of a new Managing Director (MD). Currently, one nominee director position from Pakistan has remained vacant since last year. The Chairman and MD positions are respectively nominated by the Oman Investment Authority (OIA) and GoP, and each shareholder has the right to nominate three directors. Furthermore, the management Committees functioned actively during the year to implement prudent practices, promote joint decision making and effective participation across the organization. Communication and strategic direction, especially with the transition in top leadership, will remain important from rating purview.

The rating takes comfort from structured succession plan which is in place for the key positions, resulting in smooth transition of responsibilities at the top of the hierarchical pyramid. Annual reports are fairly descriptive and contain comprehensive disclosures. POIC continues to strengthen its risk infrastructure through development and acquisition of risk automation solutions and information technology security tools in order to bring efficiency in risk processes and be at par with our peers in industry.

For further information on this rating announcement, please contact Ms. Tayyaba Ijaz, CFA (042-35723411-13, Ext. 8005) and/or the undersigned at 021-35311861-64 (Ext. 207) or email at info@vis.com.pk.





Sara Ahmed
Director

Applicable Rating Criteria: Corporate Governance Ratings (August 2017)
https://docs.vis.com.pk/docs/CGR-Methodology-201708.pdf

VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .