Stock brokers meet MNAs to discuss capital market reforms

By Our Correspondent
January 23, 2025
Chairperson of the National Assembly’s Standing Committee on Finance and Revenue Syed Naveed Qamar (second left) and Member Standing Committees of the National Assembly Dr Mirza Ikhtiar (third left) posing for photo after meeting with PSBA officials on January 22, 2025. — FacebookPSXAssociation

KARACHI: The Pakistan Stock Brokers Association (PSBA) held a key meeting with Chairperson of the National Assembly’s Standing Committee on Finance and Revenue Syed Naveed Qamar and Member Standing Committees of the National Assembly Dr Mirza Ikhtiar Baig in Islamabad. The meeting, led by Chairperson of the PSBA Muhammad Munir Khanani, was attended by Senior Vice-Chairman Zahid Latif Khan,

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CEO and Secretary General Bilal Farooq Zardi, and board members Asad and Muhammad Adnan. The PSBA chairperson expressed gratitude to Qamar for engaging in discussions aimed at strengthening Pakistan’s capital markets. He emphasised that a dynamic, efficient and world-class capital market is crucial for the country’s economic growth aspirations.

Senior Vice-Chairman Zahid Latif Khan highlighted the market’s attractive price-to-earnings (P/E) ratio, currently lower than historical levels of 8.5x, alongside promising dividend yields and positive economic indicators, presenting lucrative opportunities for investors.

During the session, PSBA board members shared their perspectives on enhancing the market and reported significant growth in investor participation. From July to December 2024, the number of unique identification numbers (UINs) increased by 61,862, reaching a total of 357,419, with December alone seeing an addition of 15,130 new UINs -- a record monthly increase. The CEO of the PSBA presented various proposals to address regulatory challenges and boost market participation.

Key recommendations included rectifying anomalies in the definition of the term ‘Security’ under Section 37A of the Income Tax Ordinance, 2001, introducing investment savings accounts similar to international models, rationalising tax rates for listed companies, ensuring long-term tax policy consistency and resolving jurisdictional matters through the Council of Common Interest.

Qamar acknowledged the concerns and assured his support in forwarding the proposals to relevant authorities for consideration. Dr Baig emphasised that the capital market’s growth would benefit both stakeholders and the government. The PSBA delegation expressed optimism and thanked Qamar for his support and commitment to fostering the financial sector’s growth.

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