Press Release

JCR-VIS Reaffirms Corporate Governance Rating of Pakistan Kuwait Investment Company (Private) Limited

Karachi, December 26, 2014: JCR-VIS Credit Rating Company Limited has reaffirmed the Corporate Governance Rating of Pakistan Kuwait Investment Company (Private) Limited (PKIC) at ‘CGR-9’. The previous rating action was announced on August 16, 2013.

The assigned rating takes into account the governance practices instituted at the organization in context of the Joint Venture (JV) agreement between the two sponsoring sovereigns. The terms of the JV agreement dictate the Board composition. Given equal representation of the sponsoring governments and legal structure, some of the practices that are considered favorable from a governance perspective may not be implemented at the institution. Nonetheless, the company has taken measures to adhere to governance best practices and protect the interests of various stakeholders. Overall control environment of the institution is considered satisfactory. All information related to the company is disseminated in electronic form through official website in addition to periodic financial statements. Disclosures available in the public domain could be enhanced further in line with best practices.

Board oversight is considered satisfactory in addition to which there are effectively functioning Board and management level committees. A performance evaluation mechanism for the Board was introduced in 2014. The Board is overseeing matters of both strategic nature and also monitoring the performance of the company.

Management team of the institution comprises seasoned professionals. Clear reporting lines are defined in the organogram along with a management succession plan. Mr. Mansur Khan was appointed as the company’s new MD in February, 2014. Greater stability at the CEO position is considered important to carry forward PKIC’s strategic plan.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at (+92-21) 35311861-70 (10 lines) or fax to (+92-21) 35311872-73.



Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria: Corporate Governance Ratings (June 2002)

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