PSX to take concrete steps for high-value listings
Adviser to Finance Minister Khurram Schehzad visited Pakistan Stock Exchange (PSX) to discuss strategies for enhancing the depth and performance of capital markets.
During his meeting with PSX Chief Executive Officer Farrukh Sabzwari and senior management of the stock market, Schehzad was provided a comprehensive overview of the strategic initiatives aimed at unlocking the potential of capital markets.
The PSX CEO emphasised that despite challenges, Pakistan's capital markets had immense potential, adding that through a well-formulated strategy, the bourse could realise the potential and significantly contribute to the economy.
Schehzad reaffirmed the government's commitment to supporting the capital market's growth and recognised its role in stabilising and underpinning growth of the country's economy.
He urged the PSX management to formalise recommendations for structural changes and privatisation of state-owned enterprises, which could advance the government's goals and boost market capitalisation.
Furthermore, he recommended the rebranding and repositioning of the Growth Enterprise Market (GEM) board that could function as a platform for venture capital and startup fund raising.
Several key initiatives were planned and discussed during the meeting, which included concrete steps for high-value listings to increase market capitalisation and attract foreign investment, setting an ambitious target to widen investor base to 2% of the national population within three years and engaging brokers and mutual funds in the campaign.
It was agreed to introduce new investment products such as exchange-traded funds (ETFs), options markets and derivatives to enhance market attractiveness. Among modern trading strategies, algorithmic trading and robo-advisory services will be explored while drawing insights from successful implementations in countries like China.
Schehzad called on the PSX and Securities and Exchange Commission of Pakistan (SECP) to jointly develop a roadmap, aimed at increasing Pakistan's weight in the MSCI Frontier Markets index, ultimately leading to its inclusion in the Emerging Markets index.
It was agreed to form a formal committee comprising the PSX, SECP, and State Bank of Pakistan (SBP) to leverage each entity's strengths. This initiative will foster financial inclusion, enhance public awareness and promote seamless digitalisation.
The FinMin adviser praised the re-launch of cash-settled futures as a significant step towards developing the derivatives market.
He stressed that collaboration with Chinese capital markets was critical to facilitate cross-border investment opportunities, broaden market access and stimulate investor participation. With these initiatives, Pakistan's capital markets will achieve significant growth and drive economic development and stability.