Your Pillars Are On Shaky Grounds, said ACCA
By Ali Ahmad
Thanks to ACCA Pakistan office and Mr. Shahkib Khan for sharing the press release.
For last few years, ACCA, as an accountancy association has been outgrowing in expectations and in numbers. The association has been the biggest commentator in Pakistan and around the world. And they are commenting none other than the governments and its fiscal policy!
Last time, ACCA even offered an advice to Pakistan Government to actually act on their policies and leave their uncanny habits of only announcing the reforms and forgetting it after it.
The G20’s first pillar – a strong regulatory framework, and the third pillar – resolving issues to do with financial institutions in crisis – are particularly unsteady and lack real global co-ordination, says ACCA, highlighting the fact that no decision was agreed on a global bank tax.
The final pillar – transparent international assessment and peer review, strengthening their commitment to the IMF/World Bank Financial Sector Assessment Program (FSAP) and supporting robust and transparent peer review through the Financial Stability Board – means that the G20 is looking to review issues, discuss them and be vigilant. ACCA says that consultation is vital in the coming months.
Despite the shaky foundations, ACCA is particularly pleased that the G20 examined sustainable public finances, emphasising the need for countries to put in place credible, properly phased and growth-friendly plans for fiscal sustainability.
Mr Arif Masud Mirza ,Head of ACCA Pakistan , says: “Real co-ordinated action was missing from the Toronto meeting; the International Monetary Fund (IMF) has warned that an unintended consequence of this lack of real co-ordination could mean the loss of millions of jobs and $2.25trillion in global output being at risk.”
Mr Mirza adds: “Stability is crucial ahead of the next meeting in Seoul later in the year and there is a real risk that complacency could plunge the global economy back into danger. ACCA recommends that while recent indications of economic expansion give cause for cautious optimism, it is too soon to abandon stimulus programmes. Before any withdrawal of stimulus, there must be a complete exit strategy in place.”
In my opinion, ACCA is simply saying, Put People First!