‘PSE sign of economic recovery’

LAHORE: Merger of the three stock exchanges was a sign of economic recovery, as this initiative will not only generate investment and develop the capital market, but also boost the confidence of investors, Punjab Governor Muhammad Rafiq Rajwana said on Thursday.

He was speaking at an informative session ‘Shaping Pakistan’s Capital Market’ organised by Pakistan Stock Exchange (PSE). The aim of the session was to spread awareness regarding the integration of exchanges, demutualisation, technology for online trading platform, future and expansion plans, as well as to build investor confidence and capital market hubs in different cities.

Rajwana said the members of the three stock exchanges were cooperating which will help meet the International Monitory Fund (IMF) deadline to improve corporate governance and transparency in the system. The Securities and Exchange Commission of Pakistan (SECP) also did a good job in this regard, he said.

The governor believes that Pakistan’s economy has started recovering in the backdrop of the China-Pakistan Economic Corridor, while the ambassadors of different countries have become active and were holding frequent meetings to offer investment in different sectors of the economy.

The Karachi Stock Exchange Deputy Managing Director Haroon Askari said earlier it was perceived that the directors of the exchange make regulations, keeping in view their own business interest.

Therefore, following formal operations of PSE, an independent management would be there to look after the exchange’s affairs, while SECP being a regulator would also play its role to ensure transparency.

He said a memorandum of understanding was signed for the integration of the stock exchanges and the reservations of some members were also redressed. “We are finding a strategic partner from abroad and talks are underway with the Istanbul Stock Exchange, Qatar Stock Exchange, and London Stock Exchange,” he said.