Press Release

JCR-VIS Reaffirms Corporate Governance Rating of Pak Oman Investment Company Limited at CGR-9

Karachi, November 28, 2014: JCR-VIS Credit Rating Co. Ltd. has reaffirmed the Corporate Governance Rating of Pak Oman Investment Company Limited (POIC) at ‘CGR-9’. The previous rating action was announced on October 10, 2013.

The rating assigned to POIC takes into account the governance practices instituted at the organization, in the backdrop of the Joint Venture (JV) agreement between the two sponsoring governments, Government of Pakistan (GoP) and Sultanate of Oman (SO). The assigned rating reflects adequate board oversight, seasoned management team, satisfactory level of transparency and financial disclosures and healthy stakeholder relations.

The terms of the JV agreement dictate the Board composition. Given equal representation of the sponsoring governments and no provision for an independent director, some of the practices that are considered favourable from a governance perspective in terms of Board and its committee structures, may not be implemented at the institution. Other than this, the company has been taking measures to adhere to best governance practices. A performance self evaluation mechanism for the Board was introduced in 2014.

POIC ensures adequate level of financial transparency and disclosures for the public. Stakeholder relations have been maintained by way of a steady stream of dividend payout annually, existence of performance evaluation committee for employees and donations to non-profit organizations.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 or fax to 35311872-3.

Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria: Corporate Governance Ratings (June 2002)

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