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Ambassador Spain Visits The Lahore Stock Exchange

Date 28/03/2013

The Ambassador of Spain, Mr Javier M. Carbajosa visited The Lahore Stock Exchange to seek an insight on the Capital Market of Pakistan. The MD/ CEO of The Lahore Stock Exchange, Mr. Aftab Ahmad Chaudhary along with his staff shared the structure and performance of the Capital Market of Pakistan. He appraised the Pakistan’s capital market by sharing the current market capitalization that is reported to be $ 44 billion contributing to 17% of the economy’s GDP with a strong faith to bring it back to US 210 Billion as reported back in year 2000. Mr. Aftab underlined the factors such as the amount of wealth created in the economy through the trading of the shares is reported to be USD 33 billion. He also stated, considering the size of the GDP of the economy that is close to making USD 750 billion provided we document every little development taking place in the country.

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 MD- LSE, Mr. Aftab Ahmad Ch strongly expressed to establish a free trade between Pakistan and India that could yield mutual benefits and accelerate towards the economic development on both ends as Pakistan’s currency is half of the Indian Currency along with other features such as relatively low cost of production and labor available in Pakistan that produces competitive prices in the international market. On the contrary, Pakistan can also benefit the Indian industry in particular to the automobile industry that is far more competitive and cheaper in India and can feed to the excessive demand of vehicles in Pakistan.

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Mr. Salman Bukhari, LSE representative delivered a presentation on the performance of LSE in strengthening of the Capital Market Industry of Pakistan. He also highlighted the various initiatives taken in building a strong mechanism and infrastructure to bring maximum transparency in the trading system thereby, safe guarding the investor’s investment.  On behalf of LSE’s management, he shared LSE’s seriousness in taking all relevant steps to ensure the protection of local and foreign investor’s investment.  Mr. Salman also enlightened on the no restriction policy of the government to the foreign investors that gives a free hand to the foreigners in trading in the Capital Market of Pakistan. Foreigners can acquire upto 100% equity in a company provided they make a proper disclosure to the documents whereas the policy of the neighboring country such as India is studied to be rigid.

MD Lahore Stock Exchange stated that Pakistan is observed to be an isolated economy and the foreign investors and the financial institutions shall avoid making their investment decisions or judgments based on the political, economic and social conditions of Pakistan rather their decision shall be based on the expected dividend yield that they could earn.

Mr.  Carbajosa stated that although the average GDP growth of the Pakistan economy is 3% however, there are other positive features that could bring the economy of Pakistan vibrant and strong. He expressed a sense of hurdle in representing the true picture of Pakistan to the Spanish Ministry of Affairs due to the incomplete picture projected by the Pakistani media and anything that is not complete in false. He stressed on the improvement required in the Public Relations Department of Pakistan in order to represent the true picture of the political, economic and social conditions of Pakistan that are not as dreadful as projected by the media.  Mr. Carbajosa informed that the Spanish government is working on show casing the economic potential and conditions of Pakistan’s economy to experience economic growth at both ends.