Karachi :Zubair Baweja, Vice President The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) convened a Special Meeting with Sulaiman Mehdi Chairman Pakistan Stock Exchange at FPCCI head office, Karachi.
While delivering welcome remarks s Zubair Baweja, Vice President Federation of Pakistan Chambers of Commerce and Industry said that Economic growth and development is an objective. It is also a mechanism to alleviate poverty and to give the opportunity to those who do not yet have it, foster equality, and create a better society. This aim is achieved through a mechanism that brings together those who need capital to innovate and grow and those who have resources to invest. They do this within an environment that is regulated, secure, transparent, and equitable. Exchanges also seek to promote good corporate governance amongst their listed issuers, encouraging transparency, accountability, and respect for the rights of shareholders and key stakeholders. Stock exchanges can contribute to two main forms the first is promoting good governance in business practices and the second is promoting investment in sustainable development.
Exchanges around the world are increasingly focused on improving SME access to finance, as evidenced by the dramatic growth in the number of dedicated SME markets. He appreciated the PSX for supporting SMEs by listing SMEs in Stock Market so they can access finance and the performance of the Pakistan Stock Exchange despite the critical circumstance around the world due to pandemic COVID-19 where leading stock markets collapsed and drastically declined.
Pakistan Stock Exchange is not only helps enterprises in expanding, diversifying and raising capital but also helps the development of the Capital Market of the country which is important for increasing trade, commerce and industry. Pakistan Stock Exchange encourages investors to invest in strong, growing and successful companies. By investing in Growth Companies, investors will get the opportunity to benefit from their growth. Investors invest in these companies for capital gain and/ or dividends while the companies receive the much needed capital. In other words, this activity completes an important part of the economic cycle whereby investors get an opportunity to invest and companies get capital to grow.
He explained the purpose of the meeting is to learn how Pakistan Stock Exchange functions to attract investment in the country by enhancing investors’ confidence and investment opportunities as well.
Sulaiman Mehdi Chairman of Pakistan Stock Exchange shared the modern dynamics and the echo system of the Stock Market through a presentation on “Pakistan Capital Markets Opportunities & Challenges” He proclaimed that we are the fastest growing economy. Pakistan Bureau of Statistics (PBS) declared Pakistan’ potential as the 4th largest on rice export and producing cotton and milk, 5th largest in producing mango sugar cane and dates, 6th largest in copper reserves, 7th largest in coal reserves and vice versa. Unfortunately by cultural default, we have less habit of saving capital. Pakistan’s GDP composition according to Pakistan Economic Survey retains as agriculture and industrial at 19.3% each and 61.4% as services. Business development indicators showed improved positions from previous years in International Perspective. Despite the Financial Action Task Force (FATF) statement of the grey list, no restriction is enforced cross-border finance and investment. While answering a query he said that our society carelessly consumes the imported products consumerism may help us improve the economy when we develop a culture of purchasing local products.
He also talked about some reservations that arise from the participants about the volatile and speculative nature of the stock exchange. He explained that the public perception about the stock market that is not a true reflection of GDP and outlays the inflation, is now changing to a positive one and we are achieving a more stable and sustainable status.
MPA Dr. Imran Ali Shah also observed the meeting and emphasized the youth participation in economic activities.
Khurram Aijaz Vice President FPCCI paid the vote of thanks to the Chairman Pakistan Stock Exchange, distinguished guests, and the participants.