CPEC stimulates investment from other countries

Punjab governor calls merger of stock exchanges a good omen

LAHORE: Punjab Governor Muhammad Rafiq Rajwana has said that in the backdrop of the China-Pakistan Economic Corridor (CPEC) programme, ambassadors of different countries are holding frequent meetings to discuss and offer investment in different sectors of the economy.

He was speaking at an informative and awareness session on ‘Shaping Pakistan’s Capital Market’ organised by the Pakistan Stock Exchange (PSE) on Thursday in a bid to create awareness of the integration of exchanges and the demutualisation process for development of the capital market.



Rajwana called the merger of the three stock exchanges of the country a good omen, saying it would generate investment, develop the capital market and strengthen investor confidence.

He praised members of the stock exchanges for extending cooperation that helped meet the International Monetary Fund’s deadline for the integration of bourses to improve corporate governance and transparency. The Securities and Exchange Commission of Pakistan (SECP) also did a good job in this regard, he added.

Karachi Stock Exchange Deputy Managing Director Haroon Askari told the audience that earlier a perception prevailed that directors of the Karachi bourse framed regulations keeping in view their business interests.



However, after the start of PSE, stock operations would be separated from the management and an independent management would look after the affairs of the bourse while the SECP being a regulator would also play its role in ensuring transparency. He said a memorandum of understanding was signed for the integration of stock exchanges and reservations of the members had also been addressed.

“We are searching for a strategic partner from abroad and talks are under way with the Istanbul Stock Exchange, Qatar Stock Exchange and London Stock Exchange,” he said.

Lahore Stock Exchange Managing Director Aftab Ahmed Chaudhry was of the view that after the merger, the cost of doing business at the bourse would come down, as at present investors were paying two types of commission on their transactions.

He expected that investor outreach would increase with the functioning of PSE and the number of investors, which currently stood around 250,000 at the three exchanges, would gradually increase.

Published in The Express Tribune, December 18^th,  2015.

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