Finance Minister Ishaq Dar on Sunday stressed the need for early completion of shares divestment process in Pakistan Stock Exchange (PSX).
Chairing a meeting of senior officials of the Securities and Exchange Commission of Pakistan (SECP), the minister underscored the need for improved governance structure for PSX. The minister was given an overview of the performance of the PSX post-integration and the status of divestment of shares of PSX. The minister noticed the post-integration improvement in performance and emphasized upon early completion of the divestment process of the shares besides improved governance structure for the new stock exchange.
He said the purpose of integration had been the creation of a modern and well governed exchange which had radically improved and well positioned in the global arena. The SECP chairman while briefing on the reform agenda for commodities futures market, expressed the regulator’s resolve to develop this segment of the market on priority basis. Pakistan, he said, primarily being an agriculture-based economy, needed a mercantile exchange that plays its due role in ensuring closer linkage with the real economy. He said Pakistan Mercantile Exchange (PMEX) should have national level branch network.
The finance minister, endorsing the SECP vision, assured of his full support in revitalising PMEX and emphasised the need to have a visionary leadership at the exchange that could steer it to success and implement required reforms.
The minister expressed that infrastructure development and long-term financing through the capital market was a critical element to raise GDP growth rate from the existing level. He assured that the government was fully committed to support the debt market in particular SUKKUKs. During the meeting, the minister was also updated on the two-day international NBFC conference held last month, and the recommendation put forth by the participants.
The minister appreciated the SECP’s supportive role in facilitating various reforms and its efforts in creating investor awareness and education. He expressed his pleasure over the increase in number of accounts and the investors’ interest in the capital markets through the mutual fund industry. Ishaq Dar said the government’s business-friendly policies and economic reform agenda had already put the country’s economy back on track. It was further emphasized that all necessary reforms be put in place to facilitate the market to grow to its full potential so that the benefits could be passed on to the economy and assured the government’s full support to the SECP for the same.