KARACHI - Caretaker Federal Finance and Economic Affairs Minister Dr Shamshad Akhtar Saturday reviewed progress on the roadmap devised by Capital Market Development and Reforms (CMDR) Committee of experts for the development of capital market of the country.
For more discussion on the report on capital market development reforms, the minister held a detailed meeting with PSX Board members and CMDR Committee members, said a statement issued by the stock exchange.
This was Dr Shamshad’s third visit to PSX after assuming charge as Caretaker Finance Minister and the objective was to discuss and review headway made in developing a plan for the capital markets development.
PSX Board Chairman Sulaiman Mehdi welcomed the minister and thanked her for pursuing the mission of the capital markets’ development.
The federal minister thanked the PSX’s Chief Executive Officer for taking initiative and collaborating the views of experts. She also appreciated the role of SECP in providing input.
Minister apprised that she was in contact with Federal Finance Minister-Designate as well as Asian Development Bank for possible support in the areas of technical assistance and capacity building.
She complimented the concerned Consultant, Haroon Sharif, who worked hard with PSX management and also the committee members for highlighting the issues, currently being confronted by Pakistan’s capital market. Now, she said, these have to be resolved.
The capital markets reforms and development road map had been devised to have a proper plan in place to ensure enhancing the market capitalization, continued resource mobilization and to strengthen the role of Pakistan Stock Exchange. Besides it was meant to enhance investors' confidence, to bring more foreign inflows and mobilize savings for investments which in turn will impact all sectors of the economy with higher growth, she added.
PSX's CEO Richard Morin briefed Dr Shamshad on the progress made so far and stated that the PSX Board has approved a strategic plan just a day before, with the broad objectives and action plan for the development of capital market.
He emphasized on shared vision and added that the road map was a starting point and it required efforts on continuous basis. For this, he suggested that a permanent forum to be established by the government.
The participants, who represented banking industry, asset management companies (AMCs) and securities brokerage drew attention towards impediments in the development of capital market and suggested a number of measures to remove them.
They suggested issuance of a comprehensive policy statement from the Ministry of Finance, reforms in taxation policy to provide level playing field to investors of capital market, re-structuring of policy board of SECP, viable business model for the brokerage industry, requirements of enhancing capital and capacity of brokerage houses and consolidation thereof, availability of derivatives and options products for retail investors, promoting digital environment, pursuing mega technology/telecom companies for listing, easing account opening process through single KYC for banks, AMCs and Brokerage Houses.
In her closing remarks, the Minister stressed upon the need to focus on integrated regulatory module and consolidation.
She expressed complete faith in the board and management of PSX and the experts affiliated with the capital market. He suggested upgrading the roadmap for way forward to implement the initiatives with specified timelines.
She offered her complete support for capital market development. The participants expressed gratitude to the minister.
