MoU to be inked for equity financing of startups through PSX

PITB chairman says partnership will boost small and medium enterprises

LAHORE: The Punjab Information Technology Board (PITB) and Pakistan Stock Exchange (PSX) agreed in principle to sign a Memorandum of Understanding (MoU) to facilitate startups in raising equity from the capital market, marking a move towards facilitating entrepreneurs in the country.

This was stated by PITB Chairman Dr Umar Saif on Friday during the 4th Roundtable Conference powered by TechHub.

Saif said that this partnership would serve as an important step towards encouraging entrepreneurs seeking to raise investment locally, and would give a major boost to small and medium enterprises, the IT industry and the national economy.

He further informed that on signing the MoU both the parties would collaborate and endeavour to facilitate technological entrepreneurship in Pakistan and nurture an ecosystem for the growth of technology startups.

Under the proposed MoU, the PITB would share its database of registered startups so that they can sign up on the online PSX Private Market.

The launch of the private market is subject to the PSX Board and SECP's approval.

Additionally, PITB's technology incubator, accelerator, co-working space shall collaborate with the PSX to promote the growth of startups.

The parties may coordinate for exploring ways and means to initiate common business support programs/projects for startups.

The parties may consider organising joint events (e.g. conferences, workshops) with representation from both parties in promoting entrepreneurship.

Moreover, the PSX and PITB will jointly create awareness amongst stakeholders regarding the three capital raising platforms offered by the PSX such as the main board (first tier), SME board (second tier) and private market (third tier).

Published in The Express Tribune, April 8^th, 2017.

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