Just like the good governance of the country, corporate governance sets out mechanisms of checks and balances to ensure the transparency and accountability of companies. Corporate governance encompasses virtually every facet of the management within the corporation from the Board of Directors and management to its suppliers, to its consumers, to its business partners, and to the government or the public administration of the country.
But the mal-governance and due to the lack of vision and ill-planning there is no governance in sight at the government level or at the corporate level. Professionalism is no where to be seen and that is why the crisis is deepening and there is no solution in sight to the resolution of this recession.
The confidence of the people has shattered and the downslide has caused the transfer of dollars abroad because of uncertainty. the massive jump in the national debt because of the sharp rupee depreciation would colossally affect the budget as interest payments would go up. The burden of debt servicing would also tremendously increase. Hence, the economy will puke in no time and the danger of bankruptcy is for real.
Even the imported economists like Shaukat Aziz failed to resurrect the economy, now let’s see what Shaukat Tareen does.