I M P A C T O N R E F O R M

CIPE is working to advance democratic and economic reform in South Asia in a range of programmatic areas. These include strengthening mechanisms of public and corporate governance to help stem corruption, empowering women and youth through business associations and entrepreneurship training programs, and bringing new and independent voices to key policy debates in the region’s consolidating democracies. Working on these issues will enable CIPE to create a strong network of individuals and groups throughout the region who are dedicated to reform.

P R O G R A M H I G H L I G H T S : • With support from the British High Commission in

Islamabad, CIPE spearheaded the launch of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), to promote economic cooperation between these countries. CIPE is providing technical assistance to develop PAJCCI’s board and staff and advice on advocacy approaches to improve cross-border trade.

• CIPE’s roundtable with the Islamabad Chamber of Commerce on “The Role of the Private Sector in Reducing Corruption” was widely attended by representatives of the private sector, key government agencies, and the media and was a rare public discussion of cooperation between the government and business on the issue of corruption.

• In Afghanistan, in cooperation with the National Center for Policy Research, CIPE held a major conference with business and government leaders to focus on improving the country’s business climate.

S O U T H A S I A

An alumnus of CIPE’s Tashabos youth entrepreneurship program in Afghanistan holds an award received for designing hydro-electric turbines that generate electricity for more than 20 households in his village.

R E G I O N A L S U C C E S S H I G H L I G H T S

S T R E N G T H E N I N G C O R P O R AT E G O V E R N A N C E I N S TAT E - OW N E D E N T E R P R I S E S

P A K I S TA N

A lack of proper financial and business controls in Pakistan’s state-owned enterprises (SOEs) has led to mismanagement and multi-billion-dollar annual losses, compromising government finances and creating opportunities for corruption. The Ministry of Finance, at the urging of CIPE and its partners, formed a taskforce of highly-placed stakeholders in 2009 to examine weak SOE governance in depth – the first time that SOEs have been subject to this level of examination. The group delivered a set of draft rules for SOE corporate governance in 2012.

P R O G R A M R E S U LT S & I M P A C T • CIPE, the Pakistan Institute of Corporate Governance,

the Ministry of Finance, and the Securities and Exchange Commission of Pakistan (SECP) hosted a series of roundtables in Islamabad, Karachi, and Lahore on SOE governance. The first roundtable, led by the then-Minister of Finance, drew more than 100 participants from SOEs, representatives of the World Bank, the Asian Development Bank, and the International Finance Corporation.

• In late 2012, draft rules for corporate governance in SOEs were approved by the Policy Board of the SECP, chaired by the then-Secretary of the Ministry of Finance. After approval by the Ministry of Law, the rules have since been fully enacted.

Former Pakistan Finance Minister Abdul Hafeez Shaikh talks to the media after presenting at a CIPE roundtable on corporate governance for SOEs in Islamabad.

E N C O U R A G I N G E C O N O M I C P O L I C Y D I A L O G U E B E T W E E N B U S I N E S S A N D P O L I T I C A L P A RT I E S

In the run-up to Pakistan’s 2013 election, CIPE worked to improve the quality of dialogue between the country’s business community and political parties on the need for economic reform. At a 2012 conference of presidents of chambers of commerce, organized by the Rawalpindi Chamber of Commerce together with CIPE, representatives of all of the major parties presented their views on the country’s economic future and listened to the ideas of business leaders.

For the first time ever, Pakistan’s political parties produced economic platforms which were presented to the business community and voters as part of the election campaign.

Leaders of key Pakistani chambers of commerce present their Bhurban Declaration, a set of policy proposals for economic revival in Pakistan.

S T R E N G T H E N I N G P O L I C Y M A K I N G A N D G O V E R N A N C E

A F G H A N I S TA N

In 2011, business associations in Afghanistan, with CIPE’s support, launched the National Business Agenda (NBA), which contains a series of targeted policy reforms that may lead to significant improvements in the Afghan business climate. CIPE continues to hold regular roundtable discussions with business leaders, policymakers, and other key stakeholders to help make the NBA a reality. These efforts have led to improvements in a number of areas.

CIPE works at the provincial level, including conducting seminars for 15 Provincial Councils in 2012 to increase their understanding of the value of an active private sector. As a result, the Provincial Councils have been more responsive to private sector requests to address such issues as corruption and transparency.

• Consistent with NBA recommendations, the Afghan Central Bank has drafted a new Islamic banking law and an industrial banking law.

• In accord with the NBA’s recommendations, the government improved infrastructure at its six existing industrial parks and announced the creation of seven new industrial parks.

• The Carpet Working Group, appointed by the Afghan government and comprised of members of relevant government ministries and industry representatives, adopted NBA recommendations, including reducing the income tax on carpets from 20 percent to 10 percent and exempting carpet-making equipment from tariffs.

• Meeting with the governor and municipal authorities, the Takhar Provincial Council stopped illegal fees on truck drivers, lowering the prices of goods sold locally.

P R O G R A M R E S U LT S & I M P A C T

Since 2011, CIPE has worked with Samriddhi, the Prosperity Foundation, to build the organization’s capacity to serve as an independent economic policy think tank. The organization had previously focused only on training young people in entrepreneurial skills. Samriddhi has prepared a Nepal Economic Growth Agenda (NEGA) that highlights reforms needed to spur the country’s development in key areas of the economy.

The Federation of Nepalese Chambers of Commerce and Industry has endorsed Samriddhi’s proposals on strengthening democracy through policy advocacy. Nepal’s major political parties have signed a commitment to reform the country’s hydropower sector, one of Samriddhi’s key NEGA recommendations.

Samriddhi Executive Director Robin Sitoula accepts CIPE’s Leading Practices Award for the organization’s work to promote entrepreneurship and introduce youth to ideas about economic and political reform.

S U P P O RT I N G I N D E P E N D E N T E C O N O M I C A N A LY S I S A N D I N P U T I N P O L I C Y D E B AT E S

N E P A L

For more information, please contact CIPE at southasia@cipe.org

The Center for International Private Enterprise1155 15th Street NW, Suite 700 | Washington, DC 20005www.cipe.org | cipe@cipe.org

P a r t n e r P r o j e c t sPA K I S TA N A N D A F G H A N I S TA N Pakistan-Afghanistan Joint Chamber of Commerce and Industry

B A N G L A D E S H Bangladesh Women’s Chamber of Commerce and Industry Promoting the Sustainability of Women’s Business AdvocacyN E PA L Samriddhi, the Prosperity Foundation Nepal Economic Growth Agenda Strengthening Democracy through Policy Advocacy

C a p a c i t y - B u i l d i n g a n d Tr a i n i n g P r o j e c t sR E G I O N A LBuilding a Regional Network of Women’s Business OrganizationsA F G H A N I S TA NIncreasing Institutional Capacity and Access to InformationPA K I S TA NPromoting Economic Reform through Business Advocacy Promoting Policy Reform through Business Advocacy

C I P E P R O G R A M M I N G I N S O U T H A S I A

The programs described in this publication are funded by the National Endowment

for Democracy and the British High Commission Islamabad

0913

Women’s chambers and associations from across the region gathered in Kathmandu for a training session facilitated by CIPE Pakistan Deputy Country Director Hammad Siddiqui. CIPE Vice Chair Karen Kerrigan shared her views on how U.S. business organizations can succeed in advocacy.

CIPE launched a network of women’s chambers of commerce and business associations, providing an opportunity to share the experiences of well-established groups in India, Bangladesh and Pakistan with younger organizations from Bhutan, Nepal, and Sri Lanka. This program aims to build these organizations’ capacity to serve their members’ needs and represent their interests in the policy process.

S U P P O RT I N G W O M E N ’ S B U S I N E S S A S S O C I AT I O N S

S O U T H A S I A R E G I O N A L

The Center for International Private Enterprise (CIPE) strengthens democracy around the globe through private enterprise and market-oriented reform.

CIPE is one of the four core institutes of the National Endowment for Democracy and an affiliate of the U.S. Chamber of Commerce. Since 1983,

CIPE has worked with business leaders, policymakers, and journalists to build the civic institutions vital to a democratic society. CIPE’s key program

areas include anti-corruption, advocacy, business associations, corporate governance, democratic governance, access to information, the informal sector

and property rights, and women and youth.