KARACHI: Federal Minister for Finance and Economic Affairs, Dr. Shamshad Akhtar visited Pakistan Stock Exchange (PSX) on Saturday, August 11, 2018. It was her third visit to PSX after assuming charge in caretaker setup.
At her first visit on June 18, 2018, the Minister had advised PSX to form a Capital Markets Development and Reforms (CMDR) Committee of industry experts to elaborate and propose a roadmap for the development of Pakistan’s capital market and the said Roadmap was submitted to her. In order to further deliberate the Report on ‘Capital Market Development Reforms’ she held a meeting with the PSX Board and Committee members.
Mr. Sulaiman Mehdi, Chairman PSX Board welcomed the Hon’ble guest and thanked her for taking time and keen interest in the affairs and mission of the Capital Markets and its development. The meeting was attended by PSX Board Members, Management and CMDR Committee Members. The visit was to discuss and review headway made on developing the Road Plan for the Capital Markets Development.
The Minister thanked the CEO of PSX for taking initiative and collaborating the views of experts. She also appreciated the role of SECP in providing input. The Minister apprised that she is in contact with Finance Minister-Designate of the newly elected government as well as Asian Development Bank for possible support in the areas of technical assistance and capacity building.
She complimented the concerned Consultant, Mr. Haroon Sharif, who worked hard with PSX management and the Committee in highlighting the issues, currently being confronted by Pakistani Capital Market and now these have to be plugged-in.
The Road map has been devised in order to have a proper plan in place to ensure enhancing the market capitalization, continued resource mobilization and to strengthen the role of Pakistan Stock Exchange to enhance investor confidence, to bring in more foreign inflows and mobilize savings for investments which in turn will impact all sectors of the economy with higher growth, she added.
Mr. Richard Morin briefed Dr. Shamshad on the progress attained till date and stated that the PSX Board has approved a Strategic Plan just a day before, with the broad objectives and action plan for the development of Capital Market. Mr. Morin emphasized for the shared vision and added that the Road Map is a starting point and it requires efforts on continuous basis. For this, he suggested to have a permanent forum to be established by the government.
The participants of the meeting, who represented Banking industry, Asset Management Companies (AMCs) and Securities Brokerage, drew attention towards impediments in the development of capital market and suggested a number of measures to remove them. They suggested for issuance of a comprehensive policy statement from Ministry of Finance, Reforms in Taxation Policy to provide level playing field to investors of capital market, Re-structuring of Policy Board of SECP, viable business model for the brokerage industry, requirements of enhancing capital and capacity of brokerage houses and consolidation thereof, availability of Derivatives & Options products for retail investors, promoting digital environment, pursuing mega technology/telecom companies for listing, easing account opening process through single KYC for banks, AMCs and Brokerage Houses, etc.
In her closing remarks, the Minister stressed upon the need to focus on integrated regulatory module and consolidation. She expressed complete faith in the Board & Management of PSX and the experts affiliated with the capital market and suggested to upgrade the roadmap for way forward to implement the initiatives with specified timelines. She offered her complete support for capital market development. The participants expressed their gratitude to the Minister.