Pakistan in contact with ADB for technical assistance

Caretaker finance minister says she is playing active role in connecting new govt

KARACHI: Caretaker finance minister Dr Shamshad Akhtar has hinted Pakistan is in contact with the Asian Development Bank (ADB) for possible technical assistance and capacity building.

Dr Akhtar, who has served the Manila-based financial institution in various positions during 1990-2011, said she is also playing an active role in connecting the new government with the ADB.

She said this during a meeting with the Pakistan Stock Exchange’s (PSX) board of directors on Saturday.



“The minister apprised that she is in contact with the finance minister-designate of the newly-elected government, as well as ADB for possible support in the areas of technical assistance and capacity-building,” stated the PSX in a press statement.

At present, Pakistan is in contact with multiple international financial institutions and friendly countries, including the Islamic Development Bank (IDB), China and Saudi Arabia to acquire financial assistance, to stabilise its foreign currency reserves and come out of a balance of payments crisis. They altogether are estimated to lend and support to the tune of $7 billion, while China has already provided $2 billion in fresh loans.



Additionally, Pakistan is also preparing to enter into a discussion with the International Monetary Fund (IMF) for a bailout.

PSX roadmap

The meeting discussed at length the roadmap, approved the other day, for the development of the capital market. The minister suggested upgrading the roadmap for a way forward to “implement the initiatives with specified timelines”, the statement said.

“The roadmap has been devised in order to have a proper plan in place to ensure enhancing the market capitalisation, continued resource mobilisation and to strengthen the role of the PSX. The objective is to enhance investor confidence, to bring in more foreign inflows and mobilise savings for investments, which in turn will impact all sectors of the economy with higher growth,” she commented, according to the statement.

PSX Managing Director Richard Morin also briefed Dr Akhtar on the roadmap and stated that the PSX board approved a strategic plan just a day before, with broad objectives and action plan for the development of the capital market.

He emphasised the shared vision and added that “the roadmap is a starting point” and it requires efforts on a continuous basis. For this, he suggested to have a permanent forum to be established by the government.

Participants of the meeting, who represented the banking industry, asset management companies (AMCs) and brokerage houses, drew attention towards impediments in the development of the capital market and suggested a number of measures to remove them.

They suggested the issuance of a comprehensive policy statement from the ministry of finance. The discussion revolved around reforms in taxation policy to provide level playing field to investors of capital market, restructuring policy board of the Securities and Exchange Commission of Pakistan (SECP), and a viable business model for the brokerage industry. Reforms for requirements of enhancing capital and capacity of brokerage houses and consolidation thereof, availability of derivatives and options products for retail investors, promoting digital environment were also discussed.

Published in The Express Tribune, August 12^th, 2018.

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