Country’s capital market needs to position itself for partnering in meeting the growth objectives of the Nation. This was stated by Mr. Ahsan Iqbal while chairing a feedback session on the Capital Market Development Programme of the 11th five year plan of the government of Pakistan organized by the Lahore Stock Exchange.
Mr. Ahsan Iqbal, the Federal Minister for Planning and Development appeared as the chief guest and shared the government’s frame of reference towards the growth of the capital market. He added that Pakistan’s GDP should grow at 8% annually based on the existing favorable demographic age distributions statistics. Mr. Iqbal stressed that all sectors of the economy, the government, the private sector, Academia, civil services, media and the capital markets shall work in a collaborative mode for the national development of our beloved country.
The session comprised of the key capital market participants, the premier officials of the Karachi Stock Exchange, Islamabad Stock Exchange and the representatives from the Asset Management Industry to perform as a collective think tank in achieving a common vision.
The potential of our capital market can only experience its absolute value if the strengths of our capital market evoke admiration outside the geographical boundaries of the country through the help of the media. Marketing the capital market both nationally and internationally shall add to the confidence amongst the local and the foreign investors. This was stated by the Chairman Lahore Stock Exchange, Dr. Salman Shah while addressing the participants.
While delivering an insight presentation to the participants, Mr. Nadeem Naqvi – Managing Director, Karachi Stock Exchange stressed that although Pakistan’s Capital Market performance has made its name and mark in the international market, however, in order to ensure a sustainable growth in this industry, the capital markets need to introduce variety in the products catering to the needs of the individuals and the institutional investors. Mr. Naqvi proposed models for infrastructure finance such as public sector guarantees, infrastructure bonds, provincial and municipal bonds to raise funds for the development of the capital markets.
Managing Director – Lahore Stock Exchange, Mr. Aftab A. Ch, while addressing the participants expressed that the capital market can play a crucial role in driving both the borrower and the investors resulting in wealth creation in the society. Mr. Aftab shared that the Lahore Stock Exchange has been the first exchange to introduce a structured program that associates LSE to the potential unlisted enterprises across Pakistan. This initiative has been inducted under the Department of Corporate Communications, titled as The Capital Raising Program that targets the unlisted sector on scheduled basis as part of its core functions. He added that as a result to these efforts, LSE has listed five new listings this year and has couple of high net worth companies in the pipeline. Mr. Aftab while sharing the prospects of the capital market stated that we have abundant cash to invest provided good quality projects, credibility, responsible management exists, the money walks in automatically.
It may be mentioned that LSE prides itself for being an exchange for the retail investors since inception in 1971. LSE is already the only exchange in Pakistan which has a regular financial literacy program. LSE, has to its distinct credit that it has been a pioneer in introducing a culture of investment not only in the city of Lahore but also in other major cities of Punjab, namely Faisalabad and Sialkot. LSE was the only exchange in Pakistan to have set up trading floors in both of these cities and the LSE's brokerage outreach covers about 20% of the UIN population in the country. Today, the average volumes generated from the LSE (inclusive of broker to broker trading) amount to about 20% of the total market volumes in Pakistan. LSE also has one of the most advanced trading platforms at any other stock exchange in Pakistan, and has been a pioneer exchange in bringing technological innovations.
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