Islamabad, Dec 25: Khurram Schehzad, Advisor to the Finance Minister, was invited by Farrukh Sabzwari, CEO of the Pakistan Stock Exchange (PSX), to discuss strategies for boosting the performance and depth of Pakistan’s capital markets. During the meeting with PSX’s senior management, Schehzad was briefed on the stock exchange’s ongoing strategic initiatives designed to unlock the full potential of Pakistan’s capital markets.
Schehzad emphasized the importance of collaboration between the PSX, the Securities and Exchange Commission of Pakistan (SECP), and the State Bank of Pakistan (SBP) to develop a comprehensive roadmap aimed at enhancing Pakistan’s presence within the MSCI Frontier Markets index. He highlighted the long-term goal of achieving inclusion in the MSCI Emerging Markets index. To support this effort, Schehzad endorsed the creation of a formal committee involving PSX, SECP, and SBP, leveraging their combined strengths to advance the country’s financial landscape.
The proposed initiative aims to foster financial inclusion, raise public awareness, and drive digitization in the capital markets. Schehzad also underscored the importance of promoting the KSE-100 Index’s strong performance, which would serve as a key task for brokers and market participants.
Farrukh Sabzwari, CEO of PSX, expressed confidence in the potential of Pakistan’s capital markets despite current challenges. He stressed that, with a well-structured strategy, PSX could harness this potential to significantly contribute to the nation’s economic growth and stability.
Schehzad reiterated the government’s commitment to supporting the growth of the capital markets, recognizing their critical role in stabilizing the economy and fostering growth. He further recommended formalizing structural changes and prioritizing the privatization of State-Owned Enterprises (SOEs) to boost market capitalization and align with government objectives. Additionally, Schehzad proposed rebranding and repositioning the GEM board to function as a platform for venture capital and startup fundraising.
Taking concrete steps to increase market capitalization through high-value listings, attracting foreign investment. Aiming to expand the investor base to 2% of the national population within three years, engaging brokers and mutual funds in the effort.
Introducing new investment products like Exchange-Traded Funds (ETFs), options markets, and derivatives to enhance market appeal. Exploring innovative trading strategies such as algorithmic trading and robo-advisory services, drawing on successful examples from global markets like China.
Schehzad also lauded the relaunch of cash-settled futures as a significant milestone in developing Pakistan’s derivatives market. He emphasized the importance of collaborating with Chinese capital markets to facilitate cross-border investment opportunities, broaden market access, and increase investor participation.With these initiatives in place, Pakistan’s capital market is poised for significant growth, contributing to the country’s economic development and stability.