PSX gains status of regional exchange : Ishaq Dar

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PSX gains status of regional exchange : Ishaq Dar

KARACHI, Jan. 20 (APP): Federal Finance Minister Senator Mohammad Ishaq Dar Friday said that Pakistan Stock Exchange (PSX) had been converted into a regional exchange after off loading 40 percent equity to Chinese consortium.
Speaking at the signing of share purchase agreement of PSX’s equity
stake here at PSX Building, he expressed the hope that these Chinese partners will bring more investment in Pakistan.
The finance minister said conversion of PSX into a regional exchange was the result of a team work by the Ministry of Finance, Securities and Exchange Commission of Pakistan (SECP), PSX management and brokers of the exchange.
Earlier, the demutualisation of three local exchanges was successfully
done, which paved the way for reforms with the exchange, he added.
Senator Ishaq Dar said the PML N government, led by Prime Minister Muhammad Nawaz Sharif, through its best policies brought macro economic stability in the country.
“All indicators are positive. We have also enough reserves to pay five
months’ import bill,” he remarked adding that Pakistan would have better future.
The finance minister said that Pakistan would be included among the top 10 economies of the world by 2030.
He recalled that when the PML N government came into power in 2013,
Karachi Stock Exchange index was 19000 points, which has now reached 50,000.
To a proposal by PSX Chairman Muneer Kamal, he said, “We are ready to create an investment fund at PSX.”
Pakistan Development Fund had already been set up and the company
was also approved by the government. Some world class institutions had shown their interest in this fund.
He was confident that the China Pakistan Economic Corridor (CPEC) would be a source of socio economic change in the region.
More projects like Karachi Circular Railways have been included in the CPEC, and the total amount has been enhanced to $54 billion from $46 billion.
The finance minister reaffirmed that there would be zero loadshedding
by the end of 2018, as 10,000 MW would be added to the national gird up to March 2018.
He recounted his government’s achievements on social and economic fronts over the last three years.Chinese Ambassador to Pakistan Sun Weidong, describing the share purchase agreement as an important development, said it would mark new step towards economic partnership of the trusted friends—China and Pakistan.
He said Chinese exchanges forming the consortium, which purchased 40 percent shares of PSX brokers, would bring new capital products. He added that economic partnership would move forward with the support of Pakistani partners. He further said this integration would promote foreign investment in Pakistan.
He noted that the purchase of PSX shares came at the time when very
important initiative of the CPEC had been launched which received a big applause in both countries and the world in general.
The Chinese envoy invited Pakistanis to join their Chinese brothers in
celebrating China’s new year Rooster starting next week.
SECP Chairman Zaffar ul Haq Hijazi said that his organisation
was actively taking required steps to regulate the capital market and for its growth. “We are fully prepared to tackle the market challenges,” he
remarked.
He said Pakistan is moving towards the best and transparent capital
market after becoming one of the best performing capital markets. PSX must emerge as economic hub of the country and should continue its reforms to become more attractive for investors.
PSX Chairman Muneer Kamal termed the signing of the agreement between
PSX and Chinese consortium a historic day for Pakistan’s capital
market and for Pak China friendship. He informed that PSX intended to float CPEC bonds.
Chairman, PSX’s Divestment Committee Shahzad Chamdia appreciated the government’s support during the process of divestment.
He said, “We gave priority to quality partners over the amount received
by accepting bids of Chinese exchanges.”
Chief Executive Officer of China Financial Futures Limited Hu Zheng
read out the message of China Regulatory Commission.
Governor, State Bank of Pakistan, Ashraf Mahmood Wathra recalled the
challenges faced the country’s economy earlier, which is now back on its feet due to better policies of the government.
He said the CPEC has become a string of partnership between Pakistan
and China.
The partnership in PSX and Chinese consortium would help in raising
capital within and outside the country.
In his welcome remarks, Managing Director PSX Nadeem Naqvi gave brief account of capital market of the country. A movie was also screened about Pakistan’s capital market since 1947.